[Funding alert] Indiabulls Real Estate raises $114 mn via QIP issue

Indiabulls Real Estate has raised $114 million through Qualified Institutional Placement (QIP). The QIP was completed at Rs 101.10 per equity and trading of these shares will commence from April 18 on both BSE and NSE.

The Fund Raising Committee of this company has approved the issue and allotment of 85,559,435 fresh equity shares through this Institutional Placement, according to The Free Press Journal.

The placement issue price of Rs 101.10 per equity share represents a discount of 4.96 percent over the applicable minimum price of Rs 106.38 per equity share, the company said.

The company said the fundraising resulted in an overall dilution of 15.8 percent for existing shareholders.

The firm said around 50 percent of the demand came from new investors and over 70 percent of the book was allocated to long-term investors only.

Founded in 2006 by Sameer Gehlaut, Indiabulls is a diversified financial services conglomerate with interests in Housing Finance, Consumer Finance, and Personal Wealth.

The group also has a presence in real estate, pharmaceuticals, lighting and infrastructure and construction equipment leasing.

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

This capital will play an important role in supporting our overall growth and will provide us opportunities to rapidly scale in the near term. We have outlined a clear plan on execution, which these funds will help deliver”, said, Sachin Shah, President.

The company said Indiabulls proposes to maintain adequate liquidity and utilize the net proceeds for various purposes, including but not limited to capital expenditure such as land acquisition, land development rights or development rights.

In addition, long-term working capital, repayment, refinancing and prepayment of borrowings of the companies and its subsidiaries are also on the agenda.

Axis Capital Limited, Jefferies India Private Limited, JM Financial Limited, SBI Capital Markets Limited and IIFL Securities Limited acted as joint book-running.

About Indiabulls

In a span of 15 years, Indiabulls Group has emerged as one of the country’s foremost conglomerates. Since its inception in 2005, Indiabulls Real Estate has locked its focus on contemporary properties across India’s cosmopolitan prime spots – promoting a culture of excellence. Redefining the perfect meld of architectural genius, world-class facilities, and location advantage, IBREL has earned a position as a key trendsetter in the market today with residential, commercial, and SEZ projects.

Dotting South Mumbai’s hub with phenomenal homes was top priority after rolling out two fancy financial centres in Lower Parel. Apart from Mumbai, IBREL has elevated dream homes in New Delhi, Chennai, Hyderabad and Ahmedabad. The company also boasts an SEZ multi-project that is a ‘first-of-its-kind’ in Maharashtra.

In the quest to feature in the global market a few years ago, Indiabulls set foot in the heart of upscale London – 22 Hanover Square with the most marquee projects. The company has also been assigned credit rating of AA- for long term debt, one of the highest in the industry.