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DB Realty slumped by over 8 per cent to a life-time low on the BSE today, hit by a media report that the CBI is scrutinising the transfer of over Rs 200 crore by the company to Kalaignar TV in 2009-10 fiscal, which came to light during investigations into the allocation of 2G spectrum.
According to the newspaper report, Rs 214 crore was transferred by DB Realty to Kalaignar TV, which is a broadcaster majority-owned by the family members of DMK party chief Mr M. Karunanidhi, through two other companies.
As per the report, the funds were used for an entity called Cineyug to pick up an over 30 per cent stake in the TV channel.
Reacting to the report, the shares of the Mumbai-based realty firm plummeted by 8.23 per cent to an all-time low of Rs 142.65 apiece on the Bombay Stock Exchange. Similarly, the scrip tumbled by 8.65 per cent to Rs 142 in the early trade on the National Stock Exchange.
Later in the pre-noon session, the scrip was trading down by 3.28 per cent at Rs 150.35 on the BSE and lower by 3.12 per cent at Rs 150.60 on the NSE.
Investigating agencies are interested in the transaction, because the telecom arm of DB Realty figures among the companies that bagged 2G licences in 2008, allegedly at throwaway prices, the report added.
DB group’s telecom arm later sold its 45 per cent stake to the UAE-based Etisalat for $900 million in 2009. The company, earlier known as Swan Telecom, is now known as Etisalat-DB.
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