Property developer Indiabulls Real Estate (IBREL) is talking to investors to raise at least $150 million (Rs 750 crore) from sale of shares to select investors as part of its qualified institutional placement (QIP) plan.
The Mumbai-based real estate developer has begun its road show and has hired Morgan Stanley as adviser. A spokesperson confirmed the hiring of the investment banker.
Indiabulls Real Estate had announced last month that it planned to raise $600 million (Rs 3,000 crore) from sale of shares from a QIP issue.
The money from the QIP is expected to be used to fund its power projects, mainly the 1,320 megawatt project planned to be built in Amaravati, Maharashtra.
The company plans to seek shareholders’ approval at a meeting on May 18.
The QIP was expected to be a precursor to the initial public issue being planned by the company, sources said.
Sources involved with the development say the company plans to complete the issue soon after a clear picture emerges on who will form the next government at the Centre.
Indiabulls Real Estate shares have risen 11 per cent this month and 8.9 per cent this year, compared with 23.11 per cent gain that the benchmark sensitive index has recorded this year.
Indiabulls Real Estate had, earlier this week, said it failed to raise Rs 2,322 crore from promoters and key officials as they did not convert the warrants issued to them into equity. The promoters did not convert as the company’s shares were trading about 74 per cent below the conversion price of Rs 540 per warrant.
IBREL had issued 43 million warrants in November 2007 to promoters and joint managing directors on a preferential basis. The last date for conversion was May 4 2009.