Indiabulls Real Estate Ltd. (IBREL) has announced that its board has approved a fund-raise of approximately Rs 3,910.93 crore through a preferential issue of equity shares and convertible warrants on a private placement basis. The move aims to recapitalize the company’s balance sheet and position it for organic and inorganic growth.
Key Investors:
- Blackstone Group: A global investment firm, will invest Rs 1,235 crore.
- Embassy Group: A Bengaluru-based real estate company, will infuse Rs 1,160 crore.
Post-conversion of warrants, the Embassy Group will hold an 18.7% stake in IBREL, while Blackstone will own 12.4%.
Details of the Preferential Issue:
- Issuance of 9,13,55,606 fully-paid equity shares of face value Rs 2 each at Rs 111.51 per share.
- Issuance of 25,93,69,201 warrants, convertible into an equivalent number of equity shares, at an exercise price of Rs 111.51.
The securities will be issued to entities of the Embassy Group, Baillie Gifford, entities controlled by funds managed by affiliates of Blackstone Real Estate Fund, funds managed by Quant Money Managers, Poonawalla Finance, and other investors. The board’s approval is subject to shareholders’ approval and other requisite clearances.
Asset Acquisitions:
IBREL’s board has also approved asset acquisitions worth Rs 1,853 crore to re-energize the business and fuel growth.
Sachin Shah, executive director of IBREL, expressed excitement about the recapitalization and the four strategic asset acquisitions that will boost the company’s project pipeline. He acknowledged the constant support of the company’s two largest shareholders and welcomed the new blue-chip investors who have validated the company and its growth prospects.
Utilization of Funds:
The funds raised will be utilized for:
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- Capital expenditure for the completion of existing projects and new launches
- Proposed acquisitions
- Working capital requirements
- General corporate purposes
The move is expected to help IBREL complete its existing projects and pursue new opportunities, marking the culmination of the company’s turnaround strategy implemented over the past 13 months.
Indiabulls Real Estate is planning to raise approximately Rs 3,910.93 crore through a preferential issue of equity shares and convertible warrants.
The key investors include Blackstone Group, which will invest Rs 1,235 crore, and Embassy Group, which will infuse Rs 1,160 crore.
Post-conversion of warrants, Embassy Group will hold an 18.7% stake in Indiabulls Real Estate.
The exercise price for the warrants being issued is Rs 111.51 per share.
The funds raised will be utilized for capital expenditure, proposed acquisitions, working capital requirements, and general corporate purposes.
Indiabulls Real Estate will issue 9,13,55,606 fully-paid equity shares and 25,93,69,201 warrants, which are convertible into an equivalent number of equity shares.
The purpose of the fund-raise is to recapitalize the company's balance sheet and position it for organic and inorganic growth.
Indiabulls Real Estate's board has approved asset acquisitions worth Rs 1,853 crore to re-energize the business and fuel growth.
The new investments are expected to support the company's turnaround strategy and help complete existing projects while pursuing new opportunities.
No, the board's approval is subject to shareholders' approval and other requisite clearances.
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