Shares of DB Realty Ltd hit upper circuit level by rising about 5% to ₹122 apiece on the BSE in Thursday’s trading session. The scrip was locked in upper circuit level for the second straight session after the company announced fundraising plans.
D B Realty Ltd on Wednesday said that its board at its meeting held today has approved to raise funds via issue of 50 million warrants convertible into equivalent number of equity shares. The convertible warrants will be in addition to 7,70,00,000 warrants as disclosed in the outcome of the board meeting held last week, DB Realty had announced in an exchange filing.
The company will issue warrants to non-promoter investors on preferential basis which includes ace investor Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala, who will be issued 1,00,00,000 warrants through RARE Investments. Other non-promoter investors also include Lotus Family Trust represented by its Trustee namely Barclays Wealth Trustees (India) Private Limited, KIFS Dealers, among others.
Each warrant is convertible into 1 equity share and the conversion can be exercised at any time within a period of 18 months from the date of allotment, in one or more tranches.
DB Realty shares have been in continuous rising trend since the past few trading sessions, hitting upper circuit levels, after the realty firm had announced plans to raise ₹563 crore by issuing warrants to promoters and investors.
The multibagger stock has rallied over 95% in a month whereas it has surged over 434% in the last six months. From trading over ₹18 per share level in February 2021, the realty stock has skyrocketed more than 563% in a year’s period. The counter is up over 148% in 2022 (year-to-date or YTD) so far.
As per the recent BSE shareholding pattern, Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala holds 2.06% stake in DB Realty as of December 2021.
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