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Indiabulls Real Estate surges 8% on business restructuring plan

The stock moved higher by 8% to Rs 230 on BSE in otherwise weak market

SI Reporter  |  Mumbai 

Infrastructure, real estate, realty

moved higher by 8% to Rs 230 on BSE in noon deal after the Mumbai-based real estate said that its board will meet next week to consider the business plan that it considered in April last year. “The board of directors is scheduled to meet on Wednesday, February 14, 2018, to consider the various options and recommendations of the committee constituted for the reorganization/ of the existing residential and commercial office leasing businesses of the Company and to take appropriate decisions, as required,” said in a regulatory filing. on April 17, 2017 had announced plans to restructure its business by creating a separate venture for commercial and leasing operations as part of strategy to have focusssed approach on each segments. The Mumbai-based developer plans to hive off commercial and leasing business into a separate entity 'Indiabulls Commercial Assets Ltd' (ICAL), according to a regulatory filing. The restructuring/reorganising of its businesses could be through placing ICAL as a separate holding company, under the Indiabulls Real Estate, to hold assets and investments relating to 'commercial & leasing' business segment. ICAL would undertake the operations of 'commercial & leasing' business segment and/or explore opportunities to bring in strategic investments. Indiabulls said it could also reorganise its existing businesses by way of a demerger of the undertakings, business, activities and operations pertaining to its 'commercial & leasing' business segment. ICAL would be primarily focussed on annuity business through rental income of existing portfolio, under-development projects and future projects. The housing vertical would be primarily focused on earning profits and return on equity from the business of selling of properties that are developed, under developed and from future projects. Since April 17, 2017, the stock of zooms 119% from Rs 106, as compared to 15% rise in the S&P BSE Sensex. At 01:14 PM; it was trading 7.5% higher at Rs 229 against 1.2% decline in the benchmark index.

A combined 15.85 million shares changed hands on the counter on BSE and NSE so far.

First Published: Fri, February 09 2018. 13:17 IST
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