Indiabulls Real Estate raises Rs 538 cr from promoters

Indiabulls Real Estate Ltd has raised Rs 538 crore by alloting over 8 crore securities, including equity shares, to promoter group companies.
In a filing to the BSE, the company said it has "issued and allotted an aggregate of 3.67 crore equity shares of face value of Rs 2 each at the issue price of Rs 67 per share, and 4.36 crore warrants, convertible into equivalent number of equity shares of face value of Rs 2 each at an exercise price of Rs 67 per equity share to the promoter group entities namely, SG Infralands Pvt Ltd and SG Devbuild Pvt Ltd."

As on June 30, the promoters had 37.73 per cent stake in the company. Its share price today rose by 8.16 per cent to Rs 55.70 apiece on the BSE.
"Consequent to the said allotment, the paid-up equity share capital stands increased to Rs 92,33,55,478 divided into 46,16,77,739 equity shares of face value Rs 2 each," the filing added.
Last month, Indiabulls Real Estate's board had approved the preferential offer and issue of up to 3.67 crore shares and up to 4.36 crore warrants to the promoter group entities at an issue/conversion price of Rs 67 per share.
"The total equity investments by the promoters would amount to Rs 538 crore in the company, post conversion of warrants," it had said.

The fund is being raised to augment the long-term resources for meeting funding requirements for its business purposes, and as a reflection of confidence that the promoters have in the future, Indiabulls Real Estate had said.