Indiabulls Real Estate completes fund raise of Rs865 crore through QIP; stock skids ~4%

18 Apr 2022 , 09:29 AM

Indiabulls Real Estate informed investors that it has completed a capital raise of Rs8.65 billion for Rs101.10 per equity share through Qualified Institutional Placement. Trading of these shares will initiate from April 18, 2022, i.e., today on the stock exchanges.

Indiabulls Real Estate is currently trading at Rs104 down by Rs4.7 or 4.32% from its previous closing of Rs108.70 on the BSE. The scrip opened at Rs104.90 and has touched intraday high and low of Rs104.90 and Rs103 respectively.

The Board of Directors’ fund-raising committee has approved the issue and allotment of 85,559,435 new equity shares through this Institutional Placement. The Placement issue price is set at Rs101.10 per equity share, which represents a discount of 4.96% to the applicable floor price of Rs106.38 per equity share calculated by applicable SEBI regulations. The fundraising resulted in an overall 15.8% dilution for current shareholders.

The company launched this institutional placement on April 7, 2022, and witnessed a strong response from both existing as well as new institutional investors including domestic and global funds. Nearly ~50% of the demand was from new investors and 70%+ of the book was allocated to long-only investors.

Mr. K. G. Krishnamurthy, Non-Executive Chairman & Independent Director commented, “We are delighted to have successfully concluded the placement. We appreciate the continuous confidence and support of the investment community amid ongoing geopolitical headwinds and turbulent markets.”

Axis Capital Limited, Jefferies India Private Limited, JM Financial Limited, SBI Capital Markets Limited, and IIFL Capital Services Limited were the Joint Bookrunning Lead Managers for the offering.