Real estate developer DB Realty has come under a negative light after the arrest of its MD Shahid Balwa in connection with the 2G spectrum scam investigations. However, Vinod Goenka, co-promoter of DB Realty said that DB Realty & Etisalat-DB have no equity or any connection.
Real estate developer DB Realty has come under a negative light after the arrest of its MD Shahid Balwa in connection with the 2G spectrum scam investigations. DB Realty Director Shahzaad Dalal has also stepped down from the company.
In an interview to CNBC-TV18, Vinod Goenka, co-promoter of the company said that DB Realty has no equity connection with Etisalat-DB. He also clarified that Etisalat was not considering pulling out of the telecom venture in I
Going forward, the company is well poised to meet demand. Goenka reiterated that DB Realty has no problem in funding any project. However, he was quick to add that the company's debt stands at Rs 380 crore.
He further added that no pledged shares have been sold in the market and are held by ICICI.
The company has pending land payment of Rs 800 crore. The company is planning to rope in private equity player for Bandra project for repayment, informed Goenka.
Here is a verbatim transcript of the interview with CNBC-TV18's Udayan Mukherjee. Also watch the accompanying video.
Q: How successfully will you be able to ring fence DB realty and its operations from the kind of news flow that has affected sentiment for your stock?
A: I would like to clarify one thing and that is for all the listeners, viewers that DB Realty and Etisalat-DB have no connection between the two companies. There is no shareholding of DB Realty in Etisalat-DB and barring the investments which are made by Shahid and myself in our personal capacities. There is no other connection between the two companies. So that is one thing which I thought I must clarify to the viewers. As far as the performance of the company is concerned. I think this year is going to be a great year for us. We have done fresh booking of about Rs 2900 crore till third quarter and we are targeting to touch about Rs 3500 crore by the end of the year which would be the highest sales ever achieved by us and we have circulated some numbers after the last quarter. Our companies debts are extremely low. We have only Rs 380 crore of debt on the balance sheet with a networth of Rs 3200 crore. As far as all the projects are concerned most of these projects which are at the moment under construction are sold from 40% to 95%, co cash flows are good, the projects are all being executed on time. The sales have slowed down in the last one, one and a half quarters but that