DB Hospitality to raise Rs1,000 crore by selling stake in properties
14 October 2011
Dynamix Balwas Group's DB Hospitality, in which DB Realty recently picked up 49-per cent stake, is planning to raise over Rs1,000 crore by either offloading its stake or that in any of its three operational and eight under-construction properties.
D B Hospitality plans to complete the fund raising exercise by March-end and intends to use the proceeds to provide liquidity support to the realty business, according to a report in The Economic Times.
Shares in the listed company, DB Realty rose up 3 percent in early trading on Friday but parred gains in the next 30 minutes of trading. At 9.59, the company's shares were trading up 0.75 percent at 53.75 rupees in a weak Mumbai market.
DB Hospitality confirmed the move to the newspaper, but did not specify the quantum of funds that could be raised.
In August, D B Realty announced its intention of investing group firm - DB Hospitality - "to diversify the asset portfolio and invest in strong yield assets".
DB Hospitality has about 550 keys across three operating hotels in Mumbai, Goa and Ahmedabad, and is in the process of developing close to 1,900 keys across eight hotels in five cities.
Earlier this year, four executives of the firm, including two managing directors, were charged for their alleged involvement in the 2G scam.
They have denied any wrongdoing. In February, one of the former managing directors, Shahid Balwa, had resigned nearly a month after his arrest.