In a regulatory filing made before market hours today, the real estate developer informed that the Promoter Group has sold 1.46 crore shares of the company reflecting a 2.91% stake in the company and have raised Rs 301 crore by sale of the said shares.

A substantial portion of the proceeds from the sale of the said shares (net of tax) has been infused back by the promoters into the company as repayment of related party transactions and unsecured interest free loan.

The funds so infused have enabled the company to retire its entire debt and therefore, the company on a standalone basis shall be debt free on a standalone basis on or before 30 November 2023.

D B Realty’s journey to become debt free started about 3 years ago when the company had a debt of Rs 1,373 crore (standalone) and Rs 3,140 crore (consolidated) as of 30 September 2021.

Since then, the company has single mindedly focused on becoming debt free and has undertaken asset monetization and joint ventures as a route to achieving this goal.

In addition to the above, the company also undertook a massive de-coupling exercise with the promoter group. The company had in the past invested approximately Rs 1500 crore in various promoter group entities. As on date the company has completely exited all its investments in the promoter group companies with recovery of its entire preferential investment.

This massive decoupling exercise resulted in cash flow becoming available to the company and which resulted in the company acquiring 100% stake in the Grand Hyatt Goa, 75% stake in the Hilton Mumbai & 50% stake in the upcoming Marriott Marquis Hotel & Convention Centre, St. Regis, Aerocity & Prestige Trade Centre at Delhi and which marked an entry into the hospitality business.

Being debt free will enable the Company to cement the Company’s position as a credible counter party for realty majors looking to enter the at Mumbai Metropolitan Region (MMR) Realty market which is the largest real estate market (in value terms) in India.

The company is also looking to build a large annuity portfolio and by 2028 is expected to have more than 2.00 million sq. ft. of prime leasable office space in Mumbai CBD under its ownership.

"The company’s management stated that no further equity is proposed to be sold by the core promoter group in the foreseeable future and further the money infused by the core promoter group into the company shall be interest free and shall not be repaid by the company until the company has surplus liquidity in the future,” D B Realty said in a statement.

DB Realty is engaged primarily in the business of real estate construction, development and other related activities.

The company's consolidated net profit jumped 55.49% to Rs 884.20 crore in the quarter ended September 2023 from Rs 568.67 crore during the previous quarter ended September 2022. Sales surged to Rs 68.02 crore in Q2 FY24 from Rs 10.16 crore in Q2 FY23.