Farallon, LNM to pick stake in Indiabulls co; invest Rs 1,580 cr

MUMBAI: Indiabulls Real Estate has entered into an agreement with FIM and LNM India Internet Ventures, who will jointly invest Rs 1,580 crore. FIM is a foreign venture capital investor managed by Farallon Capital Management LLC and LNM India Internet Ventures is an investment entity of LN Mittal group.

The investment will be by way of subscription to equity shares at Rs 66.67 per share in Sophia Power Company, an unlisted subsidiary of Indiabulls Real Estate engaged in the power sector, for an aggregate of 37.5 per cent of its post issue capital. FIM will invest Rs 987.50 crore for 23.4 per cent post issue stake and LNM India Internet Ventures invest Rs 592.50 crore for 14.1 per cent stake in Sophia Power.

Indiabulls Real Estate has invested Rs 395 crore at Rs 10 per share, and will hold 62.5 per cent of the post issue capital of Sophia Power. The company has also invested Rs 197.50 crore by subscribing to equity shares of Indiabulls Power Services, another unlisted subsidiary engaged in the power sector. The stakeholders propose merging Indiabulls Power Services into Sophia Power, with Indiabulls Real Estate holding 71.4 per cent in the merged company, with 17.9 per cent held by FIM and balance 10.7 per cent by LNM India Internet Ventures.