Indiabulls Real Estate dips 6% after listing of QIP shares

Nearly 86 million equity shares of Rs 2 each allotted to QIBs pursuant to qualified institutional placement (QIP) are listed on the exchange with effect from Monday, April 18, 2022.

Shares of Indiabulls Real Estate dipped 6 per cent to Rs 102.20 on the BSE in Monday's intra-day trade after 85.56 million equity shares allotted to qualified institutional buyers (QIBs) got listed on the stock exchanges today.

"85,559,435 equity shares of Rs 2 each, allotted to QIBs pursuant to qualified institutional placement (QIP), are listed and admitted for trading on the exchange with effect from Monday, April 18, 2022," BSE said in notice dated April 13, 2022.

Indiabulls Real Estate had raised Rs 865 crore at Rs 101.10 per equity share through QIP. The placement issue price of Rs 101.10 per equity share represents a discount of 4.96 per cent to the applicable floor price of Rs 106.38 per equity share calculated in accordance with applicable SEBI regulations. The fund raise resulted in an overall 15.8 per cent dilution for current shareholders, the company said in a press release.

The institutional placement was launched on April 7, 2022 and had witnessed a strong response from both existing as well as new institutional investors including global and domestic funds, with nearly around 50 per cent of the demand from new investors and 70 per cent plus of the book allocated to long only investors, the company said.

Indiabulls Real Estate proposes to maintain sufficient liquidity and use the net proceeds for various purposes, including but not limited to capital expenditure (including acquisition of land, land development rights or development rights), long-term working capital, refinancing/repayment/pre-payment of the borrowings of the Company and/or its Subsidiaries and general corporate purposes.

However, the market price of Indiabulls Real Estate almost halved or down 48 per cent from its 52-week high level of Rs 195.90 touched on November 9, 2021.