DB Realty on February 9 informed the stock exchanges that it will grant 50 million substitutable warrants to non-promoter investors like Rakesh Jhunjhunwala’s RARE Enterprises, Rekha Jhunjhunwala, KIFS Dealers, Aditya Chandak and Abhay Chandak.
Every warrant is substitutable into one stake of the company and the transformation can be practised at any time within a duration of 18 months from the date of allotment, in one or more tranches, DB Realty told.
DB Realty will grant 10 million warrants to Rekha Jhunjhunwala and 10 million warrants to RARE Enterprises, which is possessed by Rakesh Jhunjhunwala. The Jhunjhunwala family presently owns a 2.06 percent stake in the firm, as per the company’s December shareholding.
The firm will further grant 5 million warrants to Lotus Family Trust, 10 million warrants to Abhay Chandak and 10 million permits to Aditya Chandak. The preferential case of warrants to a clutch of marquee investors arrives days after the company’s contract for a minority stake sale to Godrej Properties fell through.
Godrej Properties revoked its proposed investment of Rs 400 crore in the firm for a 10 percent share and a 50-50 joint venture coming after backlash from investors. An amount equal to at least 25 percent of the warrant issue price shall be expected at the time of subscription and allotment of each warrant and the balance shall be payable by the warrant owner on the exercise of the warrant at any time within a duration of 18 months from the date of allotment, DB Realty announced.
The company announced that it will hold an unusual general meeting of shareholders on March 4 to pursue for authorization for the issue of these warrants.Shares of DB Realty were closed up in their 5 percent upper circuit of Rs 115.9 on the National Stock Exchange.