In a significant move signaling growth and strategic expansion, Embassy Group, a leading real estate developer, has announced a substantial investment of INR 1,160 Cr in Indiabulls Real Estate Limited (IBREL) through preferential allotment.
This investment is accompanied by the contribution of residential assets valued at INR 703 Cr in key markets of Bengaluru and Chennai to IBREL. The transaction, subject to approvals, highlights the Embassy Group’s commitment to bolstering IBREL’s growth trajectory and enhancing shareholder value.
Preferential Allotment:
- Invests INR 10 Cr in equity shares & INR 1,150 Cr in warrants; 25% upfront & balance over 18 months
- Floor price of INR 111.51 per shareas per SEBI guidelines including valuation by one of the Big 4 firms
- Embassy to remain as the largest shareholder with 18.7% ownership (on a fully diluted basis)
Asset / Project Contributions:
- 31-acre / 93-villa proposed project in North Bengaluru
- 0.5 msf highrise residential project in Whitefield, Bengaluru with all approvals
- 1.4 msf proposed high-rise project in Chennai which is part of an existing township
- Acquisitions basis valuations at an ~8-16% discount to average of two independent valuations
Jitendra Virwani, Chairman & Founder of the Embassy Group said, “Being the largest shareholder, our commitment to the IBREL platform remains intact. This investment is to provide a pipeline of assets to IBREL for future growth while bringing prestigious investors to the shareholder roster. The transaction also offers growth to the listed entity by penetrating the key south Indian markets of Bengaluru and Chennai.”
About Embassy Group
Embassy Group is a leading real estate developer. The 70+ msf of commercial, residential, industrial and warehousing, hospitality, services, retail, and education spaces they have delivered emphasize high standards of quality, world-class services, environmental management, and safety. Founded in 1993, their operations now span the Indian and international markets of Bengaluru, Chennai, Hyderabad, Thiruvananthapuram, Mumbai, Pune, the NCR, Serbia, and Malaysia.
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