Home / Companies / News /  Jhunjhunwala to take part in DB Realty's fundraising, shares hit upper circuit

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. Shares of DB Realty surged to hit the upper circuit level of 5% at 116 apiece on the BSE.

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 announced in an exchange filing today.

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.

“Warrants Issue Price shall be the price not being lower than the price determined in accordance with Chapter V of SEBI ICDR Regulations and other applicable regulation, if any and the same will be exercisable into equivalent Number of equity shares of the face value of Rs.10/- each," informed the Mumbai-based realty firm.

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 86% in a month whereas it has surged over 387% in the last six months. From trading over 18 per share level in February 2021, the realty stock has skyrocketed more than 521% in a year's period. In 2022 so far, DB Realty shares are up over 137% (year-to-date or YTD).

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