Indiabulls Looking Up To Realty Arm

April 9, 2007	(1 votes, average: 1 out of 5)  Loading ...
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The promoters of Indiabulls group is planning to make an handsome investment of Rs. 450 crore in Indiabulls Real Estate (IREL) in one of the biggest fund infusions through a promoter in real estate.

The list of Promoters includes the name of Sameer Gehlaut, Saurabh Mittal and Rajiv Rattan will together buy 1.5 crore warrants of Indiabulls Real Estate (IREL) at Rs 300 per share, a 15% premium to IREL’s Friday closing price of Rs 260.75. The combined stake in the company is likely to shoot up to about 35% upon conversion of the warrants into equity shares.

The transaction is believed to be one of the largest fund infusions by any promoter in Indian real estate.  As far as the distribution of investment is concerned, Mr. Gehlaut has invested Rs 225 crore, with the other two promoters investing Rs 112.5 crore each.

IREL holds massive properties including the Jupiter and Elphinstone mills in Mumbai. IREL has plans to develop a large commercial complex comprising two towers of 16 storeys each and two towers of 14 storeys each.

IREL will also build a special economic zone (SEZ), through one of its subsidiaries. The project will soon come up at Raigad district of Maharashtra, a township in Sonepat, Haryana and residential projects in Gurgaon. The company has recently raised about Rs 1,200 crore through a listing on the Alternative Listing Market (AIM) in London.

Indian real estate market is turning milestones into stepping stones, a well known fact. Indiabulls is among the real estate companies that too do not want to miss such an excellent business opportunity. But three interest rate hikes in the last six months have raised niggling issues over the growth in future.

News Published Under:   Real Estate India |

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