Jhunjhunwala-backed DB Realty hit 5% lower circuit limit; technical analysts see 'bearish' trend

Shares of DB Realty Ltd fell sharply to touch their lower price band in Tuesday's trade. The stock slipped 5 per cent to hit a day low value of Rs 203.90 over its previous close of Rs 214.60.

Last week, the firm said it has raised Rs 920 crore by selling shares to institutional investors, including Morgan Stanley Asia, to fund its real estate projects and strengthen its balance sheet. The company launched its Qualified Institutional Placement (QIP) issue on March 7 and the issue was closed on March 13.

In a BSE filing, DB Realty informed that the board of directors approved the issue and allotment of 3,56,66,675 equity shares to qualified institutional buyers at the issue price of Rs 258 per equity share, aggregating to Rs 920 crore.

Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, owns a stake in the realty firm. As of March 14, 2024, she held 1 crore shares or a 1.86 per cent stake in the company.

Technical analysts largely suggested that the counter looked 'bearish' in the near term. Support could be seen at Rs 210, followed by Rs 202 level. On the higher side, resistance may be found at Rs 233.

AR Ramachandran from Tips2trades said, "DB Realty stock price looks bearish but also oversold on daily charts with strong resistance at Rs 233. A daily close below support of Rs 202 could lead to a lower target of Rs 180 in the near term."

Ravi Singh, SVP - Retail Research, said the counter looked weak on daily charts and it can slip towards Rs 170 level in the near term. Keep stop loss placed at Rs 210, he added.

The firm is engaged in real estate development and construction. It is primarily in the business of real estate construction, development and other related activities. The company is focused on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment.

DB Realty's portfolio consists of over 100 million sq. ft of prime property. Most of the projects are based in and around Mumbai and are under various stages of planning and construction.