Indiabulls Real Estate lost 3.99% to Rs 197.50 at 09:35 IST on BSE after the company's board of directors approved the proposal of buy-back of equity shares of the company.
The announcement was made after market hours on Friday, 18 May 2018.On the BSE, 1.70 lakh shares were traded in the counter so far compared with average daily volumes of 10.67 lakh shares in the past two weeks. The stock had hit a high of Rs 204 and a low of Rs 195.50 so far during the day. The stock hit a 52-week high of Rs 269.50 on 7 August 2017. The stock hit a 52-week low of Rs 151.40 on 24 May 2017.
Indiabulls Real Estate said that the board of directors of the company, at its meeting held on 18 May 2018, has approved the proposal of buy-back of up to 2.6 crore fully paid-up equity shares of Rs 2 each of the company, being approx. 5.45% of existing paid-up share capital of the company, at prevailing market price on stock exchanges subject to a price not exceeding Rs 240 per equity share, aggregating up to an amount not exceeding Rs 624 crore, being less than 10% of total paid-up share capital and free reserves of the company from the open market through the stock exchange mechanism.
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, Indiabulls Real Estate said.
On a consolidated basis, net profit of Indiabulls Real Estate rose 2639% to Rs 1648.33 crore on 364.04% rise in net sales to Rs 2028 crore in Q4 March 2018 over Q4 March 2017.
Indiabulls Real Estate is one of the largest real estate company with 15 on-going projects with total saleable area of 33.91 million sq. ft. under its wing. The company has a land bank of 1,046 acres and also possesses 2,588 acres of SEZ land at Nasik, Maharashtra.
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