India benchmark indices are seen oscillating in a tight range with the NSE benchmark Nifty50 index hovering close to the 18,600 mark on Tuesday. The broader markets are seen relatively outperforming the frontline indices with Nifty Midcap and Smallcap index advancing 0.15% and 0.20%, respectively. In this background, one stock that is shining is DB Realty Ltd.
DB Realty Ltd is engaged primarily in the business of real estate construction, development and other related activities. Most of the projects are based around Mumbai and are under various stages of planning and construction.
On Tuesday, the company said that it has executed the Securities Purchase Agreement and Deed of Transfer of Partnership Interest on May 29, 2023, for proposed disinvestment/sale/transfer of its entire holding/interest in below mentioned entities:
- Prestige (BKC) Realtors Pvt Ltd. (executing BKC 01 Project at BKC) in which the Company along with its Wholly Owned Subsidiary holds securities to represent 50% holding on a fully diluted basis;
- (ii) Turf Estate Joint Venture LLP (executing Turf Project at Dr. E. Moses Road, Mahalaxmi) in which the Company holds a 50% share of profit/loss.
Total consideration to be received from the sale/disposal of shares held in Prestige (BKC) Realtors Pvt Ltd is approx. Rs 978.70 crore (Including WOS consideration). Meanwhile, the total consideration to be received from the transfer of the company’s share interest in Turf Estate Joint Venture LLP is Rs 197.79 crore. The total amount which the company will receive will be used for reducing the debt of the Company/its related entities and further investments.
The total shares traded so far have exceeded the 15 lakh mark and the stock is trading above its key short and long-term moving averages. The stock was trading in the three-digit mark in September 2022 and currently, it is trading around Rs 87 level on NSE. The realty company has a total debt of over Rs 3,300 crore with this move the debt burden on the company would reduce and it would reflect in the company’s finances.