Rakesh Jhunjhunwala Portfolio Stock: D B Realty continues its winning streak; scrip almost doubles in 1 month – What investors should know

Hitting an upper circuit of 5 per cent for the fifth straight session, the shares of Rakesh Jhunjhunwala-backed D B Realty has almost doubled in the last month on the BSE. The stock has jumped by 97 per cent to Rs 128.6 per share today from Rs 65.4 per share on January 11, 2022 on the BSE.  

The surge in the stock is mainly on the multiple news, which includes Godrej Properties stake buy, which was later reversed and the recent fund-raising plan of the company’s board, wherein they will allot 5 crore debenture warrants to investors, including Rakesh Jhunjhunwala’s RARE Enterprise.  

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The company is mulling to raise Rs 1,575 crore through issue of warrants in multiple tranches to the promoter group and other investors, with an aim to become a debt free company. 

D B Realty, in a regulatory filing on Thursday, said the board in its meeting held on February 9, 2022 approved allotment of further 5 crore warrants convertible into equivalent numbers of equity shares to six non-promoter investors. 

It has proposed to allot 1 crore warrants each to Rakesh Jhunjhunwala's RARE Investments, Abhay Chandak and Aditya Chandak. It will also allot 50 lakh warrants each to Lotus Family Trust and KIFS Dealers. 

The proposed allotment of 5 crore warrants is in addition to 7.7 crore warrants to be issued to promoter group and Pinnacle Investments, thus taking the total warrants issued to 12.7 crore, the company’s filing to exchanges revealed. 

Ace Investor Rakesh Jhunjhunwala with wife Rekha Rakesh Jhunjhunwala held 5 million or 2.06 per cent stake in D B Realy as on December 31, 2021, the shareholding pattern data shows. 

D B Realty had also proposed to allot 5 crore warrants to Godrej Properties, but the deal got cancelled, concerns raised by minority shareholders and other stakeholders of the latter. 

The stock had hit an all-time high of Rs 540 on March 31, 2020. It touched a record low of Rs 3.61 on April 22, 2020.