DB Realty, a small cap stock owned by the late investor Rakesh Jhunjhunwala, saw a significant increase in its share price by up to 7% after the company raised Rs. 1544 crore through a preferential issue. This has led to a surge in the stock’s value, reaching its 52-week high at Rs. 174.40 per share. In the last six months, the stock has provided a multibagger return of 151.68%.
One of the notable investors in DB Realty is Mrs. Rekha Rakesh Jhunjhunwala, who already owned a 1.42% stake in the company. She received an additional stake of 2%, which amounts to 1 crore equity shares under her name and another 2% through RARE Investments. Pinnacle Investments also received a total stake of 17.94%, which is equivalent to 9 crore equity shares on a fully diluted basis.
Over the past year, DB Realty has formed partnerships with well-known real estate developers such as Adani Good Homes Private Limited, Godrej Residency Private Limited, and Prestige Group entities.
In terms of financial performance, the company recorded a reduction of 95.8% in its revenue from Rs. 58.35 crore in Q4FY23 to Rs. 2.43 crore in Q1FY24. Moreover, its net loss decreased from Rs. 51.62 crore in Q4FY23 to Rs. 22.55 crore in Q1FY24. The company currently has a return on equity of 5.3%.
DB Realty, a part of the DB Group, operates in the real estate business in India. The company specializes in residential, commercial, retail, and other large-scale projects. Established in 2007, DB Realty collaborates with high-end contractors and architects to ensure the quality of its projects.
Source: Trade Brains
Definitions:
– Small cap stock: A stock of a company with a relatively small market capitalization.
– Preferential issue: The issuance of shares to a select group of individuals or institutions at a predetermined price, typically at a discount to the market price, to raise capital for the company.
– Multibagger return: An investment that generates returns several times the initial investment.
– Stake: Ownership interest in a company, represented by shares.
– Equity shares: Shares that represent ownership in a company, granting the shareholder certain rights and claims on its assets and profits.
– Fully diluted basis: A method of calculating ownership percentage that takes into account all potential shares that could be issued by a company, including those from options, convertibles, warrants, etc.
– QoQ: Abbreviation for quarter over quarter, comparing financial figures from one quarter to the previous quarter.
– Return on equity: A measure of profitability that calculates how much profit a company generates for each unit of shareholders’ equity.
Sources:
– None