Indiabulls Real Estate gains on buyback of PE investor stake

Indiabulls Real Estate rose 2.54% at Rs 58.50 at 12:01 IST on BSE after the company purchased the entire stake of FIM and its affiliates in its 7 project subsidiaries for a total consideration of Rs 1172.16 crore.

The announcement was made before market hours today, 19 August 2013.

Meanwhile, the BSE Sensex was down 206.01 points, or 1.11%, to 18,392.17

On BSE, 4.81 lakh shares were traded in the counter as against an average daily volume of 12.04 lakh shares in the past one quarter.

The stock hit a high of Rs 59.85 and a low of Rs 55.50 so far during the day. The stock had hit a 52-week low of Rs 41.75 on 4 September 2012 and a 52-week high of Rs 87.30 on 17 May 2013.

The stock had underperformed the market over the past one month till 16 August 2013, falling 15.67% compared with the Sensex's 6.31% decline. The scrip also underperformed the market in past one quarter, falling 32.41% as against Sensex's 8.15% fall.

The small-cap real estate company has an equity capital of Rs 86.40 crore. Face value per share is Rs 2.

Indiabulls Real Estate said it has purchased the entire stake of FlM and its affiliates (managed by Farallon Capital Management LLC and its affiliates, a leading US private equity fund), in its 7 project subsidiaries for a total consideration of Rs 1172.16 crore. FIM held 49% equity stake in these JVs and had invested Rs 847.48 crore in 2006 to 2008. With the purchase of FIM's entire stake, these project subsidiaries will now be 100% owned by Indiabulls Real Estate.

On a consolidated basis, Indiabulls Real Estate's net profit surged 144.9% to Rs 70.22 crore on 136.9% increase in net sales to Rs 507.31 crore in Q1 June 2013 over Q1 June 2012.

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