DB Realty is giving sky-high returns in todays session; heres why!

So, let’s know why the stock is witnessing such a sharp movement on Friday.

The stock of DB Realty has recovered over 7 per cent from lower levels as it presently trades at the levels of Rs 106.2, up by nearly 4.5 per cent i.e. near its day’s high.   

So, let’s know why the stock is witnessing such a sharp movement on Friday.  

DBS Realty (firm), a partnership firm in which DB Realty Ltd (company) is a third partner, has received a letter of acceptance (LoA) dated March 4, 2022 (received on March 10, 2022) from Municipal Corporation of Greater Mumbai (MCGM).   

The project entails construction, completion as well as the handing over of 4,000 tenements of carpet area size 27.88 metres along with transfer of land and completed tenements to MCGM to be constructed on land bearing CTS no. 11A/5A of village Chandivali in zone 5.   

The firm shall receive land as well as construction transfer development rights (TDR) of 1.56 million square feet and a premium per tenement at Rs 39.60 lakh, aggregating to Rs 1,584 crore, which shall be paid by MCGM in the form of a credit note, subject to certain terms & conditions as prescribed in LoA.   

Construction TDR and credit notes will be released by MCGM on a milestone basis as per the e-tender.   

This is a unique project, which is expected to benefit from tax exemptions under the Income Tax Act, 1961. In addition to the above, DB Realty has also bid for the construction of another 10,500 (approx.) tenements at Malad for MCGM and the company expects MCGM to take a decision in respect of its bid soon.   

The company considers the award of the aforesaid LoA by MCGM for Chandivali project to the firm a significant event as this line of business is expected to add substantially to the company's future earnings.