On Friday, Rakesh Jhunjhunwala’s portfolio business announced the complete acquisition of its subsidiary company DB Man.
Despite today’s stock market downturn, Rakesh Jhunjhunwala-backed DB Realty shares have reached the upper circuit in early morning trades. Today’s DB Realty share price began with an upside gap and went on to record an intraday high of 113.15 per share, registering a 5% advance and locking in an upper circuit as well.
On Friday, DB Realty informed Indian stock markets that it would be entirely purchasing its subsidiary business, DB Man, in which it already had a 91% share. DB Man is now a completely owned subsidiary of DB Realty.
India’s merchandise exports increased by 4.82% year on year in September to an eight-month low of $35.45 billion, while imports increased by 8.66% year on year to a five-month low of $61.16 billion, narrowing the trade deficit to $25.71 billion, according to data released by the ministry of commerce and industry on Friday. The trade deficit, or the difference between exports and imports, is 14.42% larger than the previous September’s figure of $ 22.47 billion. Aside from weakening demand, issues such as India’s export restrictions on wheat, steel, iron, and petroleum products have also contributed to the slowdown in exports.
Even while imports are likely to fall in value in the future due to lower global commodity prices, experts warn that factors such as deteriorating global demand may further reduce exports. However, a substantial devaluation of the rupee in the coming months may put pressure on imports. The rupee fell to an all-time low against the US dollar earlier this week, hitting 82, and was trading at 82.24 on Friday.
“We would like to inform you that the Company has acquired entire equity shares of DB Man Realty Limited (“DB Man”), a subsidiary company in which the Company/ its nominees already hold 91% stake. Post-acquisition of the shares by the Company, DB Man shall be a Wholly Owned Subsidiary of the Company,” DB Realty said.
Informing BSE about the acquisition-related details, DB Realty said, “The acquisition of shares by the Company is a related party transaction and one of the Promoters /KMP and relatives have interest in the equity shares being acquired from Conwood Agencies Pvt. Ltd., an existing shareholder of DB Man. The transaction of purchase of shares is done at arms length.”
On the objective of this acquisition, DB Realty said, “The objective of purchase is to make DB Man a wholly owned subsidiary company. The Company intends to purchase the entire 12,60,000 equity stake from an existing shareholders of DB Man.”
