Jhunjhunwala, others to pick up stake in DB Realty

Real estate developer DB Realty will allot 5 crore warrants to investors, including Rakesh Jhunjhunwala and his wife, within days of Godrej Properties cancelling its plans to invest Rs 700 crore in the company to pick up 10 per cent stake and set up a joint platform.

The company will raise Rs 1,575 crore through issue of warrants in multiple tranches to the promoter group and other investors, as part of its plan to become debt free. In a regulatory filing, DB Realty said the board in its meeting held on Wednesday approved allotment of further 5 crore warrants convertible into equivalent numbers of equity shares to six non-promoter investors.

The company proposes to allot 1 crore warrants each to Rekha Jhunjhunwala, Rakesh Jhunjhunwala’s RARE Investments, Abhay Chandak and Aditya Chandak. It will also allot 50 lakh warrants each to Lotus Family Trust and KIFS Dealers.

DB Realty had proposed to allot 5 crore warrants to Godrej Properties, but the deal got cancelled.

According to the filing, the proposed allotment of 5 crore warrants is in addition to 7.7 crore warrants to be issued to promoter group and Pinnacle Investments, thus taking the total warrants issued to 12.7 crore.