DB Realty hits 5% upper circuit as firm looks to sell land for Rs 480 crore

Shares of DB Realty rallied 5 per cent to hit the upper circuit in Monday’s trade after its wholly-owned subsidiary, Esteem Properties, entered into a non-binding term sheet on September 16 for the sale of land for Rs 480 crore.

“The company is pleased to inform that its wholly-owned subsidiary, Esteem Properties Pvt. Ltd. has on 16.09.2022 entered into a non-binding term sheet with a large fund for sale of its land at adjoining ITC Grand Maratha Hotel, Andheri East, Mumbai at a consideration of Rs 480 crore ("Proposed Transaction"). The proposed transaction is subject to customary diligence and necessary approvals and is expected to close within 60 to 90 days,” DB Realty said in a BSE filing.

Following the development, shares of DB Realty zoomed 5 per cent to Rs 114.95 on Monday.

Shares of DB Realty have risen 108 per cent in the last month, whereas the counter delivered a return of 133 per cent so far in the current calendar year.

The real estate firm has a portfolio comprising over 100 million square feet and 628 acres of prime property, mostly in Mumbai. Also, the company has tied up with Adani Goodhomes on various projects.

Promoters, including Vinod Goenka family, Balwa family and a few others, have close to 69 per cent stake in the Mumbai-based DB Realty.

Late Rakesh Jhunjhunwala and his wife Rekha, cumulatively held 50,00,000 lakh equity shares or 1.73 per cent stake in the company as of June 30, 2022.