In a strategic move aimed at bolstering its balance sheet and paving the way for organic and inorganic expansion, Indiabulls Real Estate announced plans to raise Rs 3,911 crore through the issuance of shares and warrants to investors, including significant contributions from the Blackstone Group and the Embassy Group.
The board of Indiabulls Real Estate approved the fundraising initiative, which involves issuing shares and warrants to investors. Notably, global investment firm Blackstone will inject Rs 1,235 crore into the company, while Bengaluru-based Embassy Group will infuse Rs 1,160 crore. Upon conversion of the warrants, the Embassy Group is set to hold 18.7 per cent of the company's shares, with Blackstone owning 12.4 per cent.
According to a regulatory filing by Indiabulls Real Estate (IBREL), the fundraising plan involves a preferential issue of equity shares and convertible warrants, on a private placement basis, with an aggregate value of approximately Rs 3,910.93 crore. The move is aimed at facilitating the completion of ongoing projects, funding new launches, and pursuing potential acquisitions, among other corporate objectives.
The board has given the green light for the issuance of 9,13,55,606 fully-paid equity shares of face value Rs 2 each at Rs 111.51 per share. Additionally, it has approved the issuance of 25,93,69,201 warrants, convertible into an equivalent number of equity shares, at an exercise price of Rs 111.51.
The investors participating in this fundraising initiative include entities from the Embassy Group, Baillie Gifford, entities controlled by funds managed by affiliates of Blackstone Inc. (Blackstone Real Estate Fund), funds managed by Quant Money Managers, Poonawalla Finance, and other financial investors. However, the board's approval is contingent upon the approval of the shareholders of the company and other necessary regulatory clearances.In addition to the fundraising plan, IBREL also disclosed asset acquisitions worth Rs 1,853 crore aimed at revitalizing the business and propelling growth. Sachin Shah, Executive Director of IBREL, expressed excitement over the recapitalization of the company, highlighting the strategic asset acquisitions that enhance the project pipeline.
Shah further remarked, "We are thrilled to have the support of our two largest shareholders and welcome new blue-chip investors who have validated the company's growth prospects. The infusion of funds will enable us to complete existing projects and explore new opportunities. This investment signifies the culmination of our turnaround strategy over the past 13 months.
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