Mumbai-based real estate firm Godrej Properties on February 4 said its board has decided not to proceed with a previously announced plan to invest Rs 400 crore to acquire around 10 percent stake in DB Realty.
The latest decision was taken after the board took into consideration the feedback from the stakeholders and minority investors, it said in a regulatory filing.
"After prolonged discussions and taking into consideration the feedback from the stakeholders and minority investors, the Board has decided not to proceed with any further evaluation of potential investment in the equity capital of the D B Realty and the Platform," the firm's statement said.
The company may, however, continue to explore the possibility of evaluating projects with DB Realty on a case to case basis, Godrej added.
The latest development comes after Godrej Properties saw its share price extend their losses from February 3, falling another 10 percent on February 4 as investors continued to worry after yesterday's announcement of a deal and December quarter earnings.
Also read: Godrej Properties extends losses, sinks 10% on worries over DB Realty deal
Godrej Properties said on February 3 it is planning to invest Rs 400 crore to acquire around 10 per cent stake in DB Realty and will also set up a Rs 600 crore equal joint platform to develop slum redevelopment projects.
News agency PTI even confirmed Godrej Properties Executive Chairman Pirojsha Godrej as saying that the company’s board has approved investments in DB Realty. "We will be investing about Rs 400 crore in DB Realty for around 10 per cent stake through issue of warrants,” PTI quoted Pirojsha as saying.
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