GPL proposed to subscribe to warrants convertible into equity shares aggregating to approximately 10% of the issued and paid-up capital of DBR for an aggregate amount of approximately Rs 400 crore. GPL and DBR each proposed to contribute an additional 300 crore towards the equity platform focused on redevelopment opportunities in Mumbai.

Following the announcement, a foreign brokerage reportedly maintained a "sell" rating on the GPL stock and cut its target price to Rs 1,424 from Rs 1,563.

The brokerage reportedly stated that GPL's deal with DBR lacks merit due to the direct purchase of a stake in the company. The brokerage is concerned over convoluted deal structure and risk-prone slum rehab projects of GPL. Both the deal with DBR and the foray into slum rehab project was unwarranted, it added.

Subsequently, GPL said it received substantial feedback and views from its stakeholders and minority investors raising concern on the proposed transaction with DBR, including with respect to the structure of the deal, rationale for the investment in DBR and merits of investing through the platform.

The GPL board met today to consider and discuss the feedback and the concerns raised by stakeholders.

"After prolonged discussions and taking into consideration the feedback from the stakeholders and minority investors, the Board has decided not to proceed with any further evaluation of potential investment in the equity capital of the DB Realty and the Platform," GPL said in a statement issued post market hours on Friday (4 February 2022).

GPL said it may however continue to explore the possibility of evaluating projects with DBR on a case to case basis.

Shares of GPL slumped 9.75% to Rs 1506.55 while DBR hit an upper circuit limit of 5% at Rs 100.90 on Friday.