Meanwhile, the BSE Sensex was down 73.02 points, or 0.39%, to 18,545.18.

On BSE, 2.78 lakh shares were traded in the counter as against an average daily volume of 4.54 lakh shares in the past one quarter.

The stock hit a high of Rs 86 and a low of Rs 80.10 so far during the day.

The mid-cap real estate developer has an equity capital of Rs 243.26 crore. Face value per share is Rs 10.

D B Realty said Pimpri Chinchwad New Town Development Authority (PCNTDA) has by a letter dated 10 June 2011 has informed the joint venture (JV) that the bidding process for the selection of a developer stands annulled and hence letter of allotment dated 25 August 2009 issued in the name of JV stands cancelled. Earlier in August 2009, Pimpri Chinchwad New Town Development Authority, Pune, the local body, had issued a letter of intent to the JV for the development of eco-friendly Township at sector 12 at Bhosari in Pune. D B Man Realty, a subsidiary of D B Realty was the special purpose vehicle (SPV) formed by the JV partners to implement the project. The local body has also refunded the upfront deposit money taken from the company.

The company said it believes that the cancellation of the bidding process for the selection of the developer after a period of 22 months from the date of issue of the letter of intent is arbitrary and illegal and has recorded its protest against the cancellation. The company is seeking professional advice for taking steps to challenge the annulment of award of tender as per the legal recourse available to it, D B Realty said in a filing with BSE.

D B Realty's consolidated net profit tumbled 94.3% to Rs 8.05 crore on 4.3% rise in net sales to Rs 391.88 crore in Q4 March 2011 over Q4 March 2010.