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Rakesh Jhunjhunwala, others to pick up stake in D B Realty

Business Standard  

Publicly listed real estate developer D B Realty will allot 5 crore warrants to new investors, including well known stock market investor Rakesh Jhunjhunwala and his wife, within days of Godrej Properties cancelling its plans to invest Rs 700 crore in the company. The company will raise Rs 1,575 crore through issue of warrants in multiple tranches to the promoter group and other investors. The new funds would be utilised primarily to repay debt and augment long term capital requirement of the company. The company proposes to allot 1 crore warrants each to the Jhunjhunwala's promoted RARE Investments, Abhay Chandak and Aditya Chandak. It will also allot 50 lakh warrants each to Lotus Family Trust and KIFS Dealers. Post-conversion of warrants into equity shares, the promoters will hold a 54.08% stake in the company,