Shares in DB Realty fall to record low

Shares in DB Realty fall to record low

Mumbai: Shares in India’s DB Realty, whose former managing director was arrested earlier this year as part of a broad telecoms corruption investigation, fell more than 10% on Wednesday to a record low.

On Tuesday afternoon, a company disclosure said its largest shareholder, Neelkamal Tower Construction, had pledged additional shares in the company.

The stock ended 8.85% lower at 98.4 after touching an all-time low of 96.5 on Wednesday afternoon.

Shares in Mumbai-based DB Realty, which builds high-end apartments in India’s financial capital, have lost about 79% from their February 2010 IPO price.

Parent firm DB Group is the Indian mobile phone joint venture partner of Abu Dhabi’s Etisalat .

DB Realty’s former managing director, Shahid Balwa, was arrested in February in an investigation into a telecoms licencing scandal and resigned earlier this month.

The government is estimated to have lost as much as $39 billion over the award of 2G telecom licences in the scandal that has battered the government of Prime Minister Manmohan Singh.

DB Realty in February denied any wrongdoing on the part of the group or Balwa.