Trinity Capital exiting DB Realty at loss as Rakesh Jhunjhunwala buys stake
Billionaire investor Rakesh Jhunjhunwala has picked up a stake in DB Realty from Trinity Capital Plc, which sold nearly 3.6 per cent for Rs 79 crore. Trinity Capital, which holds a 4.57 per cent stake in the company, is exiting the real estate arm of the Dynamix Balwas group at over 50 per cent loss.
Trinity Capital, along with Lehman Brothers Real Estate Fund and IL&FS India Realty Fund I, invested over $150 million in the company back in 2007.
The shares of D B Realty ended 4.97 per cent at Rs 94.05 on Friday on the Bombay Stock Exchange. This gives the company a market capitalisation of Rs 2,288 crore.
The shares were sold at Rs 90.35 on Friday by Trinity Capital (Eleven) Ltd, where as the acquisition price was Rs 190 per unit. Of the 8.7 million shares sold, Ohm Enterprises bought 2 million shares, while Jhunjhunwala's Rare Enterprises bought 1.25 million shares.
In February 2010, DB Realty’s shares listed on the Bombay Stock Exchange and National Stock Exchange at Rs 468 per share. The company raised Rs 1,439 crore through its public issue. But the share price tumbled later in 2010 after the promoters were accused in the 2G telecom spectrum scam.
But the company is now looking to launch new real estate projects across Mumbai. DB Realty also appointed Vipul Bansal, former managing director & CEO at Indiabulls Real Estate, to lead the firm in September.
DB Realty's total income fell by over 50 per cent to Rs 591 crore, while net profit fell by nearly 70 per cent to Rs 94.1 crore in FY12 from a year ago.
(Edited by Prem Udayabhanu)
Trinity Capital PLC (formerly Trikona Trinity Capital PLC) is a $285 million private equity fund managed by Trikona Capital Ltd. It provides capital to companies operating in India. The firm seeks to invest in real estate and related sector with a particular focus on the office, retail, hospitality and residential development. It typically invests between $8.7 million and $52.24 million in its portfolio companies.
Lehman Brothers Real Estate group is part of the private equity division of Lehman Brothers Inc. with more than $10 billion assets under management. It makes equity investments in real estate globally. The firm seeks to invests in real estate companies and service businesses ancillary to the real estate industry with a range from $10 million and $100 million per transaction.