DS Kulkarni clarifies on news item

With reference to the news item appearing in a leading portal, DS Kulkarni Developers Ltd has clarified that the Company denying the news item and the contents of the news item.

"It is true that we will be forming a Company in Noida to carry out the same activity as ours and will eventually be a subsidiary (Noida Company) of our Company in near future. The subsidiary is looking to finance the project through its own contribution, private equity and debt but we have not yet discussed it with any of the real estate venture funds whose names are displayed in the news letter and we are in discussion with some private equity players. The holding of DSK Group will be 76% stake and 24% stake will be held by local Noida based developer in the Noida Company, so that the holding stake will be with the DSK Group.

The project will start in the calendar year 2007 end or in 2008 and not in the Financial Year 2007 end as stated in the newsletter.

All these projects will depend on registrations and licenses to be received from the Uttar Pradesh Housing Development Board for which applications are in process.

It is totally wrong and we deny these facts and it is totally misunderstood by the Portal that D S Kulkarni is looking to dilute 16% stake in Noida subsidiary Company and looking to raise up to Rs 300 - 350 crores from stake sale. The investors will be informed transparently when everything will be finalised in this respect as the talks and negotiations are going on.

It is not the intention of the Company to spread such type of rumors and mislead the investors / stakeholders in wrong way. The Company always thinks in the better interest of its stakeholders.

Though some of the things are true to some extent in the newsletter."

Source : Equity Bulls

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