Indiabulls Real Estate Board Approves Raising INR 1,500?Cr via QIP
Sameer Gehlaut promoted property developer Indiabulls Real Estate Ltd said that its board has approved a plan to raise up to ?1,500 crore. The fundraising is aimed at augmenting the company’s 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 said in a stock exchange filing. Indiabulls Real Estate will soon seek approval of its shareholders for fundraise. While the board has approved the plan to raise up to ?1,500 crore, two people aware of the company’s plans said the eventual fundraising might be smaller in size. The company will most likely raise funds through the so-called qualified institutional placement (QIP) offering route. They are looking at raising at least ?500-600 crore through the planned QIP, but could raise more depending on investor demand. The plan is to raise the funds sometime in February, once shareholder approval comes in, which usually takes about a month. The funds will help the company meet its funding requirements while it awaits closure of the merger process with Embassy group. Once the merger is complete, the combined entity will look to raise a bigger round of fundraising. The merger between Indiabulls Real Estate and Embassy group is likely to receive final nod by mid of next calendar year. Following the completion of the merger, Embassy will hold a 44.9% stake in the combined listed entity, existing public shareholders of Indiabulls Real Estate will hold 26.2%, while 9.8% will be held by existing promoters and 19.1% by the Blackstone Group and other Embassy investors.
Tags : News/Views Embassy Group Indiabulls Real Estate Sameer Gehlaut