DB Realty Board to Review Corporate Structure, Considers Hotel Business Demerger

6 Feb 2024 , 11:18 AM

DB Realty, a listed real estate firm, scheduled a board meeting on February 9 to assess its current corporate structure, which includes real estate and hotel/hospitality business segments.

The board will seek in-principle approval for corporate restructuring, potentially including the demerger of the hotel/hospitality business to unlock growth and value for stakeholders.

Promoters Vinod Goenka and Shahid Balwa faced challenges after the 2G spectrum scandal in 2011, leading to legal battles. Despite their acquittal due to lack of evidence, the company experienced stalled projects and lender issues.

DB Realty has sought revitalization through partnerships and asset monetization in recent years. Notably, partnerships with Adani Property, Godrej, Prestige Estate, and Man Infra for ongoing developments were announced on January 31, 2024.

The company expanded into the hotel and hospitality sector, acquiring 500 key hospitality assets in Q3FY2024, contributing to an incremental operating revenue of ₹96 crore. It reported a consolidated net profit of ₹463 crore in Q3FY24, contrasting with a loss of ₹632 crore in Q3FY23.

Shahid Balwa, Vice-Chairman and Managing Director of DB Realty, emphasized efforts to strengthen the balance sheet, increase land bank, and deepen partnerships with real estate developers in a statement on January 31.

In September 2023, the company raised ₹1,544 crore through a preferential issue of 25.75 crore convertible warrants to promoter group/non-promoter investors, complying with SEBI regulations.

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