New Delhi: Indiabulls Real Estate Ltd, has raised Rs2,656 crore (around $565 million) through a sale of shares to so-called qualified institutional buyers to fund its real estate and power projects.
The sale, known as a qualified institutional placement, or QIP, was done at Rs185 a share and will result in a 9.36 percentage point dilution of the promoters’ stake to 16.7% from 26.06%.
In a filing to the Bombay Stock Exchange (BSE), Indiabulls said that it issued 143.5 million shares to institutions at Rs185 a share.
The company plans to use the proceeds of the QIP to fund its real estate and power projects, Gagan Banga, chief executive officer, Indiabulls Financial Services Ltd, a group company, said. “At this point of time, we do not see ourselves investing in any new businesses,” he said.
On 18 May, Indiabulls had informed the exchanges that its shareholders have approved a plan to raise up to $600 million through a QIP. Morgan Stanley was the manager to the issue.
Shares of Indiabulls’ shares rose by 3.35% to close at Rs206.45 on the BSE.