Mittal buys 3.33 pc stake in Indiabulls
Steel king Lakshmi Niwas Mittal has bought 3.33% in Indiabulls Infrastructure Development for Rs 111.75 crore in a move that gives him a foothold in the country’s fast-growing real estate and infrastructure sector.
By TNN |
MUMBAI: Steel king Lakshmi Niwas Mittal has bought 3.33% in Indiabulls Infrastructure Development for Rs 111.75 crore in a move that gives him a foothold in the country’s fast-growing real estate and infrastructure sector.
US-based hedge fund Farallon Capital has also bought a 10% stake in the company for Rs 335.25 crore. The total transaction is worth Rs 447 crore and values Indiabulls Infrastructure, which is setting up a special economic zone spread over 6,000 acres in Maharashtra, at Rs 3,350 crore.
Indiabulls Infrastructure was a 100% subsidiary of Indiabulls Financial Services before the transaction. Its stake in the company will now drop to 86.7%.
“India is a rapidly growing economy and provides a unique opportunity to create world-class infrastructure and development. The confidence of Mr Mittal, a world renowned entrepreneur and investor and Farallon Capital, one of the world’s top-most funds, in Indiabulls is a testament to the huge opportunity in front of the company,” Sameer Gehlaut, chairman and CEO of Indiabulls group.
Indiabulls Infrastructure is setting up special economic zone near the Rewas port in Maharashtra. Mr Gehlaut said that all permissions have been granted and that land acquisition has begun. It will be a multi-product SEZ. Mr Mittal’s vehicle Karrick will buy 25 lakh shares at Rs 447 per share, while FIM Holding, a vehicle of Farallon will purchase 75 lakh shares at the same price.
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This is Mr Mittal’s third investment in an Indiabulls company. In 2000, he had bought 61.3 lakh shares or 7.52% in Indiabulls Financial Services at an average price of Rs 6 per share. Earlier this year, he again purchased 8.4% for Rs 100 crore in Indiabulls Credit Services, an unlisted company that gives consumer loans. Farallon manages about $23 bln across the world in equity markets. The San Francisco-based company had invested in Indiabulls at the time of its IPO in 2004.
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