DB Realty Defaults on Rs.700 Crore Payment
D B Realty, a prominent real estate development company based out of Mumbai, has defaulted on its loan commitments to the tune of Rs.698 crore. This is the outstanding on the interest and principal repayment portions of the loan taken from financial institutions.
This is not the first time the company has defaulted. It has earlier defaulted on loan repayments to some of India’s leading financial institutions like LIC Housing Finance, Yes Bank and Reliance Capital.
Loan defaults by DB Realty in the past have ranged from small and mid-sized loans to much larger sized loans. This is among the largest defaults done by D B Realty. Incidentally, the company had also earlier defaulted on tax deposits with the government.
D B Realty is a real estate development company which has a strong franchise in Mumbai, Pune and adjoining regions. It is engaged in residential, commercial, retail and also projects that pertain to mass housing and cluster development.
As per the new rules, any default by the listed companies to financial institutions have to be reported to the exchange on the same day and the same should be put up by the exchange as well as by the company on their website.
This was introduced as an investor protection measure after it was found that companies were informing the stock exchanges only one quarter after the actual default leading to investors being unaware of the reason as the stock prices slid.
D B Realty was floated jointly by Abhishek Goenka along with Shahid Balwa of the Balwa group. Original, the company was created as Dynamix Balwa Realty which was later renamed to D B Realty. The stock is listed on the NSE and the BSE.
Ironically, the stock was locked on upper circuit at Rs.59.60 on the BSE on Friday 07th January 2022. It also touched its 52-week high on Friday and its 52-week low price is Rs.15.25 on the BSE. The stock has a market cap of Rs.1,450 crore and it is currently a loss making company.
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