Shares of DB Realty today surged 6 percent on reports that the Bharti group may buy a 49% stake in the former's hospitality arm which is developing a plot located in a hospitality district near the Delhi International Airport for Rs 350 crore.
A report in the Economic Times said the hospitality arm of DB Realty had in 2009 got the land on a 30-year sub-lease for Rs 400 crore but is yet to start construction of three hotels on the plot since it found it difficult to raise funds after the company's promoters Vinod Goenka and Shahid Balwa, were arrested for their alleged role in the scam.
Shares of DB Realty are currently trading up 5.8 percent on the BSE at Rs 120.75. The stock has risen 53.24% in the last three months.
Last month, billionaire investor Rakesh Jhunjhunwala too bought 1.25 million shares of DB Realty at an average price of Rs 90.21 apiece, totalling Rs 11.27 crore.
According to market analyst Sudarshan Sukhani, DB Realty has seen a lot of informed buying. "Much more important is that it is part of the realty sector which is showing good upside momentum, the entire sector itself," he had said in an interview with CNBC-TV18.
The realty major, with a debt considerably lower than its peers, also expects an uptake in project execution in the next six months.
It expects its Mumbai projects - DB Woods at Goregaon and Orchid Suburbia at Kandivali - to be completed by next March, while the other projects too are on schedule.
The only overhang remains on the legal front with regards to its promoters' role in the 2G scam. Even though the duo are out on bail, there is not much clarity on their involvement yet.
First Published On : Nov 21, 2012 12:29 IST