DB Realty shares surge 3.4% on promoter stake sale, eyes debt-free status

livemint.com:

DB Realty jumped 3.42% to ₹211.40 apiece in early trade on Tuesday. In a significant development, the company's promoter group has sold 1.46 crore shares, representing a 2.91% stake in the company. The sale of these shares generated a substantial sum of ₹301 crore.

Notably, a considerable portion of the proceeds, after tax deductions, has been reinvested by the promoters into the company as repayment of related party transactions and unsecured interest-free loan, the company said in a regulatory filing today. "The funds so infused have enabled the company to retire its entire debt, and therefore the company, on a standalone basis, shall be debt-free on a standalone basis on or before November 30, 2023," the company added. Also Read: Rekha Jhunjhunwala portfolio: DB Realty share price hits 52-week high The company’s journey to become debt-free started about 3 years ago, when it had a debt of ₹1,373 crore (standalone) and ₹3,140 crore (consolidated) as of September 30, 2021.

Since then, the company has single-mindedly focused on becoming debt-free and has undertaken asset monetization and joint ventures as a route to achieving this goal. Additionally, the company said it also undertook a massive de-coupling exercise with the promoter group. Previously, the company had invested ₹1,500 crore in various promoter group entities.