Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  IBREL to use QIP proceeds to pare debt, buy land
BackBack

IBREL to use QIP proceeds to pare debt, buy land

Indiabulls Real Estate plans to use the net proceeds for various purposes, including capital expenditure for acquisition of land and land development rights, working capital, refinancing or repayment of debt, and general corporate purposes

Indiabulls Real Estate's latest fund raise has resulted in an overall 15.8% dilution for current shareholders. (Photo: Bloomberg)Premium
Indiabulls Real Estate's latest fund raise has resulted in an overall 15.8% dilution for current shareholders. (Photo: Bloomberg)

BENGALURU: Indiabulls Real Estate Ltd. (IBREL) on Monday said it has raised $114 million, or around 865 core, at 101.10 per equity share through a qualified institutional placement (QIP).

The fund-raising committee of the company’s board approved the issuance and allotment of 85,559,435 new equity shares through the QIP. The issue price of 101.10 per equity share represents a discount of 4.96% to the applicable floor price of 106.38 per equity share. The fund raise resulted in an overall 15.8% dilution for current shareholders.

The QIP was launched on 7 April and saw good response from both existing and new institutional investors, including global and domestic funds, with nearly 50% of the demand from new investors and 70% of the book allocated to long-term investors.

Trading of these shares will commence on 18 April on the National Stock Exchange and the BSE.

“We are happy to have successfully concluded the placement. We appreciate the ongoing confidence and support of the investment community amid ongoing geo-political headwinds and turbulent markets," said non-executive chairman and independent director K. G. Krishnamurthy.

IBREL plans to use the net proceeds for various purposes, including capital expenditure for acquisition of land and land development rights, working capital, refinancing or repayment of debt, and general corporate purposes.

“We appreciate the support we received from our existing investors as well as many new domestic and global institutional investors. This capital will play an important role in supporting our overall growth and will provide us opportunities to rapidly scale in the near term. We have outlined a clear plan on execution, which these funds will help deliver," said president Sachin Shah.

Axis Capital Ltd, Jefferies India Pvt Ltd, JM Financial Ltd, SBI Capital Markets Ltd, and IIFL Securities Ltd served as joint book-running lead managers for the issue.

In December 2021, the property developer's board had approved a plan to raise up to 1,500 crore through one or more QIPs. The fundraising was aimed at augmenting its long-term resources and to maintain sufficient liquidity for meeting funding requirements for business activities, existing and new projects and future business growth, the company had said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 18 Apr 2022, 09:17 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie