DB Realty gains 2% on acquiring stake in 3 hotels; stock up 7% in a month

Shares of DB Realty gained 2 percent to Rs 169 apiece on September 26 after the company acquired stake in three hotel companies for more than Rs 2,300 crore. In comparison, the S&P BSE Sensex was flat at 66,002 levels, as of 12:05 am.

In the past one month, the stock of this realty major has surged 7 percent as against 1 percent gain in the Sensex benchmark. Earlier, the stock had hit a 52-week high of Rs 180 per share on September 20.

The Mumbai-based realty company is set to acquire shares in Bamboo Hotel Global Centre, Goan Hotels & Realty, and BD and P Hotels. These deals will fall into related party transactions and are done at arm’s length basis.

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As per the filing, DB Realty will acquire 10 lakh Class A equity shares in Bamboo Hotel for Rs 608.88 crore. Separately, it will acquire around 78,250 equity shares in Goan Hotels for Rs 1,410.68 crore, and 2.1 crore shares in BD and P Hotels for Rs 339.1 crore.

Earlier, the company raised funds to the tune of Rs 1,544 crore via preferential issue in two phases/rounds in the month of February and March, 2022 in order to reduce consolidated debt.

The company said that the funds raised via issue of warrants led to debt reduction of Rs 1,404 crore and further investments/acquisition of new assets would meet various requirements of its ongoing projects and working capital of the company.

In the last 1 year, the company has entered into partnership/joint venture/arrangements with large real estate developers such as Adani Good Homes Private, Godrej Residency, and Prestige Group entities.

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