DB Realty Ltd, a prominent real estate company based in Mumbai, has stunned investors with a remarkable 290% increase in its stock price over the past year.
The company’s shares have soared from ₹67.50 to ₹262.70, marking a dramatic turnaround after several years of financial challenges, including the 2G spectrum allocation scam that affected its growth.
In an effort to further strengthen its financial position, DB Realty recently announced a major fundraising initiative. The company plans to raise between ₹1,500 crore and ₹2,000 crore through a Qualified Institutional Placement (QIP).
The funds will primarily be used to reduce the company’s debt and support ongoing and upcoming real estate projects. Following the announcement, DB Realty’s stock price jumped 3%, closing at ₹262.70.
The company has also shown impressive financial recovery. For the nine months ending December 31, 2023, DB Realty reported a consolidated net profit of ₹1,330 crore, a massive improvement compared to a ₹77 crore loss during the same period last year.
This positive financial shift has been supported by the company’s strategic asset monetization and its partnerships with prominent firms like Adani Property, Godrej, and Prestige Estates.
These collaborations are set to develop over 16 million square feet of residential, commercial, and hotel space.
In a bid to unlock even more value for its shareholders, DB Realty is planning to demerge its hotel business. This move aims to attract investors focused on the hospitality sector while strengthening its core real estate operations.
With a strong promoter stake of 50.89% and significant backing from Rakesh Jhunjhunwala’s family, DB Realty is well-positioned for continued growth.
