Valor Estate Limited , formerly known as D B Realty Limited, has issued a clarification addressing market rumors regarding the conversion of Compulsorily Convertible Preference Shares (CCPS). The company has emphasized that the equity dilution resulting from this conversion is significantly lower than what has been circulated in various social media messages and posts. Additionally, the company has now issued a correction notice regarding a minor typographical error in its Extra-ordinary General Meeting (EGM) notice.

Key Clarifications on CCPS Conversion

The company has provided detailed clarifications to address misinformation circulating in the market:

Contrary to rumors suggesting a 12-13% dilution, Valor Estate has stated that the actual equity dilution from the proposed CCPS issue is approximately 0.59% of the existing paid-up capital. The company clarified that the CCPS issuance is not a fresh investment but rather a settlement of accrued profits owed to Konark Realtech Pvt. Ltd., a former partner in a Special Purpose Vehicle (SPV) that was amalgamated into Valor Estate in 2016.

Correction Notice for EGM Documentation

In its latest disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015, Valor Estate has addressed a typographical error identified by the National Stock Exchange of India Limited (NSE) in the EGM notice. The error pertained to the number of equity shares mentioned in a specific section of the documentation.

The company confirmed that the figure of 32,02,330 equity shares appears correctly in all other sections of the EGM Notice and Corrigendum, with the error occurring only in one specific paragraph due to unintentional human error and inadvertence.

CCPS Conversion Details

The conversion involves 6,45,75,000 Redeemable Preference Shares being varied to Compulsory Convertible Preference Shares (CCPS), which will subsequently convert into 32,02,330 equity shares at a conversion price of ₹201.65 per equity share, as determined under SEBI ICDR Regulations.

Company's Response to Market Rumors

Valor Estate has taken proactive measures to address misinformation:

• Filed a complaint with the Cyber Crime Cell to identify those spreading misinformation
• Reiterated that there is no adverse change in the company's capital structure
• Assured that the current proposal does not result in disproportionate dilution
• Emphasized commitment to transparency and regulatory compliance

The company maintains that rumors circulating about excessive dilution are malicious attempts to manipulate market perception and create panic among investors. All calculations and disclosures have been made in accordance with SEBI ICDR Regulations, ensuring transparency and regulatory compliance.

Valor Estate Limited (formerly D B Realty Limited) has reported a significant turnaround in its financial performance for the second quarter. The real estate developer posted a consolidated net profit of 101.00 crore rupees, reversing from a loss of 110.00 crore rupees in the same period last year.

Revenue Surge and Profitability

The company's revenue from operations saw a substantial increase, rising to 1,368.50 crore rupees from 34.80 crore rupees in the corresponding quarter of the previous year. This remarkable growth was primarily driven by the recognition of income from a conveyance agreement for Malad land and the receipt of Transferable Development Rights (TDRs) for a resettlement housing project.

Operational Performance

Valor Estate's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) turned positive at 448.00 crore rupees, compared to a loss of 232.00 crore rupees in the corresponding quarter of the previous year. The EBITDA margin improved significantly to 32.73%.

Key Developments

1. Resettlement Housing Project: The company obtained approval from the Brihanmumbai Municipal Corporation for developing approximately 13,374 Project Affected Persons (PAP) tenements. Valor Estate received TDRs aggregating to 72,840 sq. m., recognizing 896.00 crore rupees as a contract liability.

2. Malad Land Agreement: The company recognized an income of 75.55 crore rupees from a conveyance agreement for Malad land during the quarter.

3. Corporate Restructuring: Valor Estate announced an intra-group restructuring involving the transfer of a 45% stake in Worli Urban Development Project LLP between its wholly-owned subsidiaries.

Management Commentary

Shahid Balwa, Vice Chairman & Managing Director, stated, "Our Q2 results reflect the positive momentum in our business operations. The significant revenue growth and return to profitability demonstrate the effectiveness of our strategic initiatives and the underlying strength of our project portfolio."

Financial Position

As of September 30, Valor Estate reported total assets of 7,136.35 crore rupees. The company's equity share capital stood at 539.20 crore rupees, with total equity (including reserves) of 4,051.34 crore rupees.

Future Outlook

While the company has shown a strong recovery, it continues to face challenges in the real estate sector. Valor Estate remains focused on executing its ongoing projects and capitalizing on new opportunities in the Mumbai real estate market.

Note: All figures are based on consolidated financial results for the quarter ended September 30.