Mumbai: When property developer Unitech Ltd successfully raised $325 million (around Rs1,602 crore) by selling new shares to qualified institutions last month, it seemed to have set a trend for the rest of the industry to follow.
Mumbai-based Indiabulls Real Estate Ltd has now informed the Bombay Stock Exchange that its board has approved a plan to raise $600 million through qualified institutional placements (QIPs).
The company is looking to raise around $150-$200 million in the first tranche. An approval by shareholders is expected at an extraordinary general meeting scheduled on 18 May.
Morgan Stanley has been appointed as the sole banker to carry out the transaction, people close to the development said.
The fund raised via the QIPs will mostly be used to fund Indiabulls’ proposed power project in Maharashtra, they said, requesting anonymity.
Equity dilution for the QIPs could be in the range of 20-25%, said market analysts who declined to be named.
Shares of the firm closed Friday at Rs143.10, up 0.14%, on the Bombay Stock Exchange.