NEW DELHI: Mumbai-based real estate developer DB Realty (DBR) continues to attract top names for its fundraising plans. After Godrej Properties called off its planned investment in the firm, it is now billionaire investor Rakesh Jhunjhunwala, among others, who will be participating in DB Realty’s fund-raise.
DBR on Monday informed that its board has approved to raise funds through the issue of 5 crore warrants to non-promoter investors, subject to the approval of the shareholders of DB Realty Limited and regulatory authorities.
This is in addition to the issue of 7.7 crore warrants, to its promoter group and Pinnacle Investments (a partnership between Prestige group promoter Razack Family Trust and Prestige group CEO Venkata Narayana Konanki), which the company had announced last week. In total, there will be fund infusion of Rs 1,575 crore into the company post conversions of warrants allotted and proposed to be allotted, DBR said in a regulatory filing.
The company will allot 1 crore warrants each to new investors i.e. Rakesh Jhunjhunwala’s venture capital firm RARE Investments, Rekha Jhunjhunwala, Abhay Chandak, and Aditya Chandak respectively. KIFS Dealers and Lotus Family Trust will be allotted 50 lakh warrants in equal shares. These warrants are convertible into equivalent numbers of equity shares.
Experts say this development is positive for DB Realty as the firm has ample land parcel and ongoing projects in Mumbai. “Due to the scarcity of land in the island city, real estate developers having capabilities to handle redevelopment projects have immense potential. Such opportunities are likely to pay off in the future if ably executed. As per industry estimates, redevelopment projects in Mumbai could be worth nearly Rs 30,000 cr. Thus, we are seeing many companies on a spree to raise capital and gather investor interest,” said Prashant Thakur, Sr Director & Head - Research at ANAROCK Group.