Indiabulls Real Estate plans to raise Rs450 cr from promoters

Indiabulls Real Estate plans to raise Rs450 cr from promoters
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First Published: Mon, Apr 09 2007. 01 20 PM IST
Updated: Mon, Apr 09 2007. 01 20 PM IST
PTI
Mumbai: Indiabulls Real Estate (IREL) is planning to raise up to Rs450 crore through fully convertible warrants issued to the promoters, on a preferential basis.
The Board of Directors of the company would seek shareholders’ consent via postal ballot to issue up to 1.50 crore warrants that would be fully convertible into equivalent equity shares of face value Rs2 each, at a conversion price of Rs300 per share, IREL informed the Bombay Stock Exchange.
The proposed conversion price is at 15% premium to the closing price of the shares last Thursday.
IREL, which was formed by the demerger of domestic brokerage firm Indiabulls Financial Services, is also looking to raise up to $1,200 million (Rs5,200 crore) through issue of equity shares in the domestic/international markets and from Qualified Institutional Buyers (QIBs).
The total value of Indiabulls Real Estate Ltd’s effective ownership in the project companies undertaking developments was pegged at Rs15,125 crore (as on 21 December 2006) according to Knight Frank, a leading international real estate consultancy firm.
Indiabulls Real Estate projects at various stages of execution are currently valued at nearly $5 billion and include high end office and commercial spaces, premium residential developments, and special economic zones, covering a land area in excess of 7,730 acres.
Some projects include Jupiter Mills, Elphinstone Mills, Sonepat Township and Gurgoan Housing.
Shares of the company rose by over 6% at Rs276.50 in early trade on the Bombay Stock Exchange.
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First Published: Mon, Apr 09 2007. 01 20 PM IST
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