Indiabulls Real Estate soars 30% on promoter funding plan

Indiabulls Real Estate shares soared over 30 per cent today as it seeks shareholders' nod to raise Rs 538 crore from promoters, including convertible warrants worth Rs 290 crore.
The stock advanced by 30.20 per cent to settle at Rs 54.75 on BSE. During the day, it surged 33.53 per cent to Rs 56.15.
On NSE, it zoomed 30.11 per cent to close at Rs 54.65.
Indiabulls Real Estate's market value rose by Rs 539.75 crore to Rs 2,326.75 crore.
The company's board, during its meeting held on Saturday, approved 3.67 crore equity shares and 4.36 crore convertible warrants, Indiabulls Real Estate said in a BSE filing yesterday.

The move is part of effort for augmenting "the long-term resources of the company for meeting funding requirements for its business purposes," and also reflects the confidence that the promoters have, it added.

"The board approved issuance of 4,36,00,000 (four crore thirty six lakh) warrants, convertible into equivalent number of equity shares of Rs 2 each to the promoter group entities at an issue/conversion price of Rs 67 per share," it said.
At this price, these warrants would be worth over Rs 290 crore.
The shareholders' approval for the proposal would be sought during the meeting on July 20.
"The total equity investments by the promoters would amount to Rs 538 crore in the company, post conversion of warrants," it added.

The BSE 30-stock benchmark Sensex ended at 27,730.21, up 414.04 points or 1.52 per cent.