SEBI Fines DB Realty, Promoters for Financial Misstatements; Share Price Eyed

SEBI has penalised Valor Estate (NSE: DBRealty), its promoters, and officials over non-disclosures and financial misstatements regarding a loan guarantee. Fines totalling ₹25 lakh were imposed for violations of listing and disclosure rules.

Details on SEBI’s Actions

The Securities and Exchange Board of India (Sebi) recently imposed penalties on 8 entities, including DB Realty Ltd (now Valor Estate), its promoters, and officials, for failing to comply with disclosure norms.

The regulator fined DB Realty ₹5 lakh, as well as its promoters Vinod Kumar Goenka and Shahid Balwa Usman, each for ₹5 lakh. Other individuals involved were fined ₹2 lakh each.

SEBI’s investigation centred around the company’s failure to adhere to accounting standards and properly disclose a corporate guarantee provided to the Bank of India (BOI) for a loan to Pune Buildtech Pvt Ltd (PBPL). The loan, taken in 2013, later inflated to ₹516 crore by June 2020.

Lack of Transparency in Financial Filings

The regulator found that the involved parties misrepresented the financial condition of PBPL, particularly in the company’s postal ballot notices and filings, where material events like loan recall notices, possession of properties, and defaults were not disclosed.

Additionally, certain signatories, including Goenka and Balwa, failed to disclose the loan guarantee’s true status to stock exchanges. This lack of transparency violated regulatory rules designed to ensure proper investor protection. The probe, initiated in December 2020, covered the period from 2013 to 2021.

About Valor Estate (DB Realty)

Valor Estate Limited, formerly known as DB Realty Limited, was established in 2007 and is recognised as a prominent real estate developer in India. The company has developed over 100 million square feet of prime property across 35 projects, with a focus on residential, commercial, and gated community developments.

DB Realty Share Price Performance

On February 4, 2025, Valor Estate Limited’s stock price closed at ₹157.75, marking an increase of ₹5.50 or 3.61% from the previous session’s close of ₹152.30. The stock opened at ₹153.52 and reached a high of ₹162.66 during the day. It traded within a low of ₹153.52 before settling at ₹157.75.

The stock’s indicative close was ₹157.66, reflecting a positive momentum in the market. Notably, the stock snapped a four-session losing streak, making a strong recovery with a gain of nearly 3.6%.

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