DB realty rises 5% on news Jhunjhunwala's RARE Enterprises bought 12.5 lakh shares of real estate company

Shares of DB Realty rose 5% in early trading session on Monday and remained locked at the upper circuit limit following the news that investor Rakesh Jhunjhunwala's firm RARE Enterprises bought 12.5 lakh shares of the real estate company in an open market deal worth over Rs 11 crore on Friday.

The stock closed at Rs 98.75 on BSE with total trade volume of 5.40 crore shares.

According to market sources, the ace investor has been accumulating the stock since the past few days and has bought nearly 4% equity of the company so far. When contacted by ET, Rakesh Jhunjhunwala refused to comment on this, saying, “I don’t confirm anything or deny anything.”

On Friday, Rare Enterprises bought 12.5 lakh shares or 0.5% of DB Realty at an average price of Rs 90.21 a share from Trinity Capital. As on June end, Trinity Capital held 4.57% stake in the company.

Earlier this month, the board of DB Realty approved issuing up to 3.70 crore warrants on a preferential basis to promoters, promoter group. To seek shareholders’ approval on this, the company will hold an extraordinary general meeting (EGM) on November 3.

Last month, the developer appointed its new chief executive officer Vipul Bansal who had recently quit from Indiabulls Real Estate.