Indiabulls real estate to go for Rs 624cr buyback

“The proposed buy-back will make the balance sheet of the company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity,” the company said.
MUMBAI: Indiabulls Real Estate on Friday said that its board has approved an Rs 624-crore buyback for nearly 5.5% of its equity shares at a price of up to 240 per share. The main objective of the buyback is to optimise returns to the shareholders without compromising on the high growth opportunities available to the company, a release from Indiabulls Real Estate said.

“The proposed buy-back will make the balance sheet of the company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity,” it said.

In March, Indiabulls Real Estate had sold 50% of its Mumbai assets, One Indiabulls and Indiabulls Financial Centre business towers, to US-based private equity giant Blackstone at an enterprise value of Rs 9,500 crore. For the fiscal year ended March 2018, the company had reported a net profit of Rs 2,015 crore.