DB Realty has issued a clarification regarding misleading information circulating on social media concerning the proposed conversion of Compulsorily Convertible Preference Shares (CCPS). The company emphasizes that claims of a 12-13% equity dilution and a ₹1,000 crore valuation are false. DB Realty confirms that the actual equity dilution is approximately 0.66%, and the conversion is strictly governed by regulatory guidelines.
Response to Malicious Rumors
DB Realty addresses inaccurate messages circulating on social media and WhatsApp, specifically regarding the proposed allotment of 6.45 crore Compulsorily Convertible Preference Shares (CCPS) to Konark Realtech Pvt. Ltd. The company asserts these rumors are misleading, intended to cause panic and distort market perception.
Clarification on Equity Dilution
The proposed CCPS issue will result in an equity dilution of approximately 0.66% of existing paid-up capital, contrary to the falsely claimed 12–13%. The calculations adhere strictly to regulatory standards.
Settlement, Not New Investment
The CCPS issuance is a settlement of accrued profit/share owed to Konark Realtech Pvt. Ltd., a former partner in a Special Purpose Vehicle (SPV) that was amalgamated into Valor Estate Limited in 2016. This is a liability discharge, not a preferential deal.
Conversion Ratio Details
The CCPS will convert into equity shares at a price determined under SEBI ICDR, within 18 months. The conversion value is pre-fixed at ₹201.65 per share, which represents a premium of almost 44% over the current market price.
Actions Against Misinformation
DB Realty views the circulated message as a deliberate distortion intended to create panic and depress the stock price. The company has filed a complaint with the Cyber Crime Cell to identify and take action against those spreading this misinformation.
Company’s Stance
DB Realty reiterates that there is no adverse change in the capital structure, the SPV consolidation from 2016 continues to reflect correctly in financials, and the current proposal doesn’t disproportionately benefit any party. The company is committed to maintaining the highest standards of governance and transparency.
Source: BSE
