Realty stock hits upper circuit on settlement pact with lender
1 min read . Updated: 12 Jan 2023, 12:34 PM IST
Premium- DB Realty shares surged to hit the upper circuit level of 5% to ₹89 apiece
Shares of DB Realty Ltd surged to hit the upper circuit level of 5% to ₹89 apiece on the BSE in Thursday's trading session after the company said that it has executed a settlement agreement with lender Reliance Commercial Finance Ltd on Tuesday, January 10, 2023, for the loans given by the lender in the past.
“We wish to inform you that the company and its wholly owned subsidiary company, Goregaon Hotel and Realty Ltd (Goregaon Hotel) have executed Settlement Agreements with Reliance Commercial Finance Ltd on 10th January, 2023 for the loans given by the lender in the past. In line with the company's objective to reduce the debt obligations, the parties have agreed to settle all the claims in relation to the Loan Agreements by way of amicable settlement in accordance with the terms and conditions as detailed in the agreements..," the company informed in an exchange filing on Wednesday.
The company has agreed to pay an amount of ₹185.6 crore to the lender as full and final settlemet in various tranches. Further, Goregaon Hotel has agreed to pay an amount of ₹214.4 crore to the lender as the full and final settlement in various tranches.
“The aforesaid settlement amounts shall be payable in various tranches and last amount shall be payable latest by 31.03.2025. On realisation of the amount of the first installment, the parties have undertaken to unconditionally withdraw all the litigations/ proceedings/ claims made/ filed against each other," DB Realry added.
Founded in 2007, DB Realty Limited is a leading real estate developer in India, involved in residential, commercial and gated community developments. The realty stock has gained more than 44% in a year's period.
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As per the BSE shareholding pattern, Indian ace investor Rekha Jhunjhunwala, wife of late Rakesh Jhunjhunwala, has 1.46% stake or 50,00,000 equity shares in the Mumbai-based realty company as of September 2022.
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