DB Realty to demerge hospitality business, stock surges over 2%

“It will also ensure that the real estate business remains unchanged,” the firm said.

DB Realty on February 9 said it will demerge its hospitality business as a separate unit. The announcement led to buying in the stock, which gained over 2 percent.

“The Board of Directors of the Company at its meeting considered and in-principally approved the proposal to demerge its hospitality business,” the company said in an exchange filing.

The demerged entity will consisting of hotel business and assets including Goan Hotels & Realty Private Limited, a wholly owned subsidiary; BD and P Hotels (India) Private Limited, a subsidiary, and Bamboo Hotel And Global Centre (Delhi) Private Limited, an associate of the company.

DB Realty said the demerger will unlock the value of the real estate and hospitality business for shareholders, enable a differentiated strategy to capture the huge potential of the Indian hospitality sector and attract a distinct set of investors, partners, collaborators and leadership talent focused on the hospitality business.

“It will also ensure that the real estate business remains unchanged,” the firm said.

AT of 3.15 pm, the stock was up 2.45 percent on BSE at Rs 274.20.

On completion of the demerger, the shares of the resulting company are proposed to be listed on the BSE and the National Stock Exchange. The shareholders will hold a substantial stake in the resulting company, with the balance being held by DB Realty.

The Board will engage professional legal advisors, registered valuers and consultants to implement the above proposal, which shall be subject to necessary statutory and shareholders’ approvals, the company added.

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