Valor Estate Limited, formerly known as D B Realty Limited, has issued a formal clarification to address rumours circulating on social media regarding the proposed conversion of Compulsorily Convertible Preference Shares (CCPS).
The company stated that speculation of a 12–13% equity dilution is “incorrect and misleading,” adding that the actual dilution will be nearly 0.59% of the existing paid-up capital once the CCPS are converted.
According to Valor Estate, the CCPS transaction is not a fresh fund infusion. Instead, it represents the settlement of accrued profits owed to Konark Realtech Pvt. Ltd., a former partner in a Special Purpose Vehicle (SPV) that was merged into Valor Estate in 2016.
The company added that the conversion price has been fixed at ₹201.65 per share, which is a 44% premium over the current market price. A total of 6.45 crore CCPS will be issued and subsequently converted within 18 months, in line with SEBI’s ICDR regulations.
Valor Estate said the clarification was necessary to counter the incorrect narrative suggesting large-scale dilution and fresh investment, asserting that the financial impact is significantly smaller than what is being circulated online.
