Indiabulls Real Estate raises Rs 871 cr through QIP

Indiabulls Real Estate said on Monday that it has successfully completed a capital raise of $114 million or over Rs 871 crore through Qualified Institutional Placement (QIP). The QIP was completed at Rs 101.10 per equity. Trading of these shares will commence on April 18 on both BSE and NSE. 

The fundraising committee of the board approved the issuance and allotment of 85,559,435 new equity shares through QIP. The company said that the placement issue price of Rs 101.10 per equity share represents a discount of 4.96 per cent to the applicable floor price of Rs 106.38 per equity share. The company added that the fundraise resulted in an overall 15.8 per cent dilution for the current shareholders. 

Indiabulls launched the QIP on April 7. Nearly 50 per cent of the demand came from new investors and over 70 per cent of the book was allocated to long-only investors.

“This capital will play an important role in supporting our overall growth and will provide us opportunities to rapidly scale in the near term. We have outlined a clear plan on execution, which these funds will help deliver,” said President Sachin Shah.

The company has proposed to maintain sufficient liquidity and use the net proceeds for various purposes, including but not limited to capital expenditure such as land acquisition, land development rights or development rights. Long-term working capital, repayment, refinancing and pre-payment of borrowings of the companies and its subsidiaries are also on the agenda.

Axis Capital, Jefferies India, JM Financial, SBI Capital Markets and IIFL Securities were the joint bookrunning managers for the offering. 

Also read: Indiabulls Real Estate Ltd raises Rs 865 cr through issue of shares

Also read: Indiabulls Housing Finance board approves raising up to Rs 50,000 cr via debt