Indiabulls Real Estate rallies as promoter plans to invest Rs 538 cr

MUMBAI: Shares of Indiabulls Real Estate ended the day 12.70points or 30.20 per cent at 54.75 after it surged over 30 per cent in intraday trade on reports that Sameer Gehlaut, the founder and promoter of the company is investing Rs 538 crore in the company to hike his stake by 10 per cent.

Gehlaut will increase his stake from 27 per cent to 37 per cent through preferential allotment.

Gehlaut is picking up the stake through a combination of equity shares and convertible warrants at Rs 67 per share, compared to IBREL's Friday closing price of Rs 42 on BSE, a premium of 59.5 per cent.

There are indications that in future Gehlaut will hike his stake in the company further.

"I would like to consolidate my holding in Indiabulls Real Estate over a period of time while Indiabulls Group consolidates its presence in housing finance and real estate," Sameer Gehlaut, chairman , Indiabulls Group told TOI.

"This capital will strengthen the company's balance sheet, provide it with growth capital to start delivery of 6 million square feet of real estate space in the current fiscal and also help reduce its debt by about 20%," Gehlaut said.