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DB Realty hits record low on BSE after reports of CBI probe

DB Realty hits record low on BSE after reports of CBI probe
PTI
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First Published: Fri, Feb 04 2011. 10 44 AM IST
Updated: Fri, Feb 04 2011. 10 44 AM IST
Mumbai: DB Realty slumped by over 8% to a lifetime low on the Bombay Stock Exchange (BSE) on Friday, hit by a media report that the Central Bureau of Investigation (CBI) is scrutinising the transfer of over Rs200 crore by the company to Kalaignar TV in FY2009-10, which came to light during investigations into the allocation of 2G spectrum.
According to the newspaper report, Rs214 crore was transferred by DB Realty to Kalaignar TV, which is a broadcaster majority-owned by family members of DMK party chief M. Karunanidhi, by way of two other companies in the 2009-10 fiscal.
As per the report, the funds were used for an entity called Cineyug to pick an over 30% stake in the TV channel.
Reacting to the reports, shares of the Mumbai-based realty firm plummeted by 8.23% to an all-time low of Rs142.65 apiece on the BSE.
Similarly, DB Realty’s counter tumbled by 8.65% to Rs142 in early trade on the National Stock Exchange (NSE).
Investigating agencies are interested in the transaction, because the telecom arm of the company figures among the companies that bagged 2G licences in 2008, allegedly at throwaway prices, the report added.
The DB group’s telecom arm later sold its 45% stake to UAE-based Etisalat for $900 million in 2009. The company, earlier known as Swan Telecom, is now known as Etisalat-DB.
Meanwhile, the BSE benchmark Sensex was trading 40.40 points higher, at 18,489.71, at 10:54 am.
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First Published: Fri, Feb 04 2011. 10 44 AM IST
More Topics: DB Realty | CBI | Shares | Markets | Stock markets |