DB Realty has sold its complete stake in Real Gem Buildtech (RGBPL) to Kingmaker Developers for about Rs 231.42 crore, ceasing RGBPL as its subsidiary. Simultaneously, DB Realty sold its Siddhivinayak Realties (SRPL) for Rs 376.18 crore to Reliance Commercial Finance. These divestments indicate a strategic move, focusing on core operations, streamlining the balance sheet, and optimizing financial structures, particularly by settling a part of the company's liabilities. DB Realty aims to enhance flexibility, strengthen its financial position, and possibly reshape its trajectory within the real estate market through these deliberate divestment actions.
DB Realty has recently completed the sale of its entire stake in Real Gem Buildtech (RGBPL) to Kingmaker Developers (KDPL), a firm within the Rustomjee Group, for roughly Rs 231.42 crore. Following this sale, RGBPL will no longer be a wholly owned subsidiary of DB Realty. Consequently, an earlier Scheme of Arrangement put forth by RGBPL to transfer the 'Rustomjee Crown' project has been withdrawn as it becomes unnecessary. The sale is expected to generate substantial free cash flow and aid in cleaning up DB Realty's balance sheet.
Moreover, DB Realty has entered into an agreement to sell its complete shareholding in Siddhivinayak Realties (SRPL) to Reliance Commercial Finance (RCFL) for about Rs 376.18 crore. This sale aims to settle a portion of the liabilities owed by DB Realty, its subsidiary Goregaon Hotel and Realty, and its associate, Bamboo Hotel & Global Centre (Delhi) to RCFL.
These divestments represent strategic moves for DB Realty, streamlining its portfolio, reducing liabilities, and concentrating on core operations. By offloading stakes in these entities, the company is optimizing its financial structure, aiming to enhance flexibility and reinforce its business model. This would allow DB Realty to reallocate resources for upcoming projects or expansions within the real estate market. This may reshape DB Realty's standing and direction within the real estate industry.
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