Indiabulls Real Estate extends gain after closure of buyback offer

The stock soared 8% to Rs 98.60 in late noon trade, extending its past two days 3% gain on the BSE,

Indiabulls Real Estate has soared 8% to Rs 98.60 in late noon deals, extending its two-session long gains of 3% on the BSE, after the company announced closure of share buyback offer on April 10, 2017.

“Since the company has bought back 34.05 million equity shares utilizing a total of Rs 272 crore (excluding transaction costs),  which represents 50.38% of the maximum buyback size, and is in excess of minimum buyback size, the board decided to make an early closure of the buyback  with effect from April 10, 2017,” Indiabulls Real Estate said in a statement.

The equity shares were bought back at an average price of Rs 79.91 per share, it added.

Post buyback offer, the promoters’ stake in Indiabulls Real Estate increased to 50.92% from 47.50% earlier. While, public shareholding declined to 49.08% from 52.50, the company said.

In November last year, the board of real estate developer had approved buy back of shares at a price not exceeding Rs 90 per share, after the market price of company sharply from Rs 94 on October 10, 2016 to Rs 60.45 on November 21, 2016.

The company had said the buy-back will make the balance sheet of the Company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity.

At 02:46 pm; the stock was up 7% at Rs 97.50 on BSE against 0.55% decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled 33.89 million shares changed hands on the BSE and NSE so far.