Mumbai-based DB Realty Ltd has looked for investors’ endorsement for its proposition to raise Rs 563 crore by giving warrants to promoters and investors. In a regulatory filing, the organization informed that an extraordinary general meeting (EGM) has been approached February 2 to think about this proposal. The Board of Directors, in its meeting hung on January 4, endorsed the proposal for raising assets via issuance and allotment of warrants up to 13.05 crore. The warrants are convertible into an equivalent number of value shares on a preferential basis to individuals from promoters/ promoter groups and non-promoter investors.
The company proposes to raise up to Rs 563.10 crore through the issue of warrants. The amount will be used to reduce debt, fund its various projects, meet working capital requirements, strengthen the financial position and for general corporate purposes.
As per the EGM notice to the shareholders, the price of each equity warrant is Rs 43.15, which will be converted into one equity share of Rs 10 each at a premium of Rs 33.15.
Out of the total warrants, the company proposes to issue 4,87,50,000 warrants each to Goenka Family Trust and SB Fortune Realty, both part of the promoters group.
Razack Family Trust holds 60 per cent and Venkata Narayana Konanki 40 per cent in partnership firm Pinnacle Investments, the notice said.
It also proposes to issue 3.3 crore warrants to Pinnacle Investments.
The partnership firm is represented through its managing partner – Razack Family Trust through its Trustee Irfan Razack, it added.
Irfan Razack is the chairman of Bengaluru-based realty firm Prestige Estates Projects Ltd.
Prestige Group and DB Realty have tied up to develop a few projects in Delhi-NCR and Mumbai Metropolitan Region (MMR) markets.
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