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.

Key Clarifications

1. Equity Dilution: 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.

2. Nature of Transaction: 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.

3. Conversion Terms: The CCPS will be converted into equity shares within 18 months, at a price not lower than that determined under SEBI ICDR regulations.

Detailed Breakdown

Company's Response

Valor Estate has taken several steps to address these rumors:

1. Filed a complaint with the Cyber Crime Cell to identify those spreading misinformation.
2. Reiterated that there is no adverse change in the company's capital structure.
3. Assured that the current proposal does not result in any disproportionate dilution or benefit to any party.

The company maintains that these rumors are malicious attempts to manipulate market perception and create panic among investors. Valor Estate remains committed to transparency and has made all calculations and disclosures in accordance with SEBI ICDR Regulations.

This clarification serves as a reminder for investors to rely on official company communications and regulatory filings for accurate information about corporate actions and financial decisions.

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.