Dynamix Balwas (DB) Realty, the Mumbai-based realtor, has decided to buy up to 49 per cent stake in its hospitality arm, DB Hospitality Ltd, an unlisted arm where the promoters hold a majority stake.
According to a report in Business Standard, the promoters of the company, Vinod Goenka and Shahid Balwa, own 80.92 per cent in DB Hospitality Ltd while the rest is owned by private equity funds, including IIRF Holdings VIII Limited and IL&FS Trust Company Limited. Last year, Trinity Capital (Seven) Limited, Mauritius, exited its stake from the hospitality business.
R Sridhar, Group Director, DB Realty said, “The board has approved an investment up to 49 per cent in the hospitality business and we will do it in a timely and phased manner. We have already hired a big four international property consultant (IPC) to do the valuations and one of the big law firms to draw the plans. We will not raise any debt for the same. The stake buy out will enable both the funds and the promoter an opportunity to exit.”
DB Realty does not own any stake in the hospitality arm at present. It had invested around Rs 200 crore last year in DB Hospitality Ltd which will now be converted into equity. The company will invest an incremental amount of Rs 500 crore which will be divided into two tranches. In the first tranche, it will spend Rs 300-400 crore and another Rs 200 crore in the final stages. The total investment will be around Rs 700 crore.
Source
Search for more Reservation Manager jobs in Mumbai>