Mumbai: Indiabulls Real Estate Ltd said on Monday its shareholders had approved raising up to $600 million through share sale to qualified institutional buyers, to fund its projects and acquire new businesses.
The allotment of the shares is expected to be made around 22 May, the company’s draft prospectus showed. The issue opened on Monday.
Morgan Stanley is the lead book manager to the issue.
India’s realty players are facing a cash crunch as the cost of funding rose last year amidst the global credit squeeze, while inflated valuations kept home buyers on the sidelines.
New projects have since been put on the backburner while many of those under construction are delayed.
Last week, the founders of DLF, India’s largest listed developer, raised $783 million through a share sale in the firm. In April, New Delhi-based developer Unitech raised $325 million through a placement of shares with institutional investors.