Shares of this small-cap infrastructure company have hit their upper circuit today!

Shares of this small-cap infrastructure company have hit their upper circuit today!

Indian Market
by 5paisa Research Team Last Updated: 2023-01-12T12:59:20+05:30

Yesterday, the company, along with its wholly-owned subsidiary executed a settlement agreement.

The shares of DB Realty Ltd are buzzing on the bourses today. In the pre-opening session today, the shares of DB Realty Ltd, an S&P BSE SmallCap company, climbed 4.99% to trade at Rs 89.50 apiece. With this, the company hit its upper circuit and the trading activity came to a halt.

Owing to this rally, the stock is one of the top gainers on BSE from Group A. Meanwhile, as of 12.26 pm, the frontline index S&P BSE Sensex is down by 0.40%.

Yesterday, the company informed that along with its wholly owned subsidiary Goregaon Hotel and Realty Pvt Ltd, it has executed settlement agreements with Reliance Commercial Finance Ltd (Lender) for loans given by the lender in the past. This action is aligned with the company's aim of reducing its debt obligations.

In relation to the loan settlement, the company has agreed to pay an amount of Rs 185.60 crore to the lender as a full and final settlement in various tranches. Further, Goregaon Hotel has agreed to pay an amount of Rs 214.40 crore to the lender as a full and final settlement in various tranches.

On realization of the amount on the 1st instalment, the parties have undertaken to unconditionally withdraw all the litigations/ proceedings/ claims made/ filed against each other.

DB Realty Ltd is a real estate development company that focuses on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment, in and around Mumbai. The company’s residential portfolio currently covers projects catering to customers across all income groups. In their commercial portfolio, they build and sell customized office space as per the requirements of buyers. Their retail portfolio includes the development of shops in selected locations.

The company is currently trading at a TTM PE of 13.7x, against the industry PE of 38.30x. The company is a constituent of Group A stocks and commands a market capitalisation of Rs 3,061.43 crore. The stock has a 52-week high & low of Rs 139.45 and Rs 52.10 respectively on BSE.


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