The Hindu Business Line : Indiabulls Real Estate plans convertible warrants

Mumbai April 9 Indiabulls Real Estate Ltd has decided to issue 1.5 crore warrants that can be converted into equity shares, to its promoters on a preferential basis.

The company said that the warrants will be converted into equity (of face value of Rs 2) at a price of Rs 300 per share within a period of 18 months. This means an additional Rs 450 crore capital infusion by the promoters, which will increase their stake to 38 per cent from 30 per cent.

The company has also decided to raise $600 million in India or overseas to fund various projects, said a notice to the stock exchange. The fund will be raised through a combination of Global Depository Receipts, or American Depository Receipts or Foreign Currency Convertible Bonds and a domestic issue to the Qualified Institutional Buyers.

The company's share on the BSE went up 5 per cent to Rs 273 on Monday.

The company was formed by the demerger of the real estate business of the Indiabulls Financial Services last year.

The company board, which met on April 5, had decided to obtain shareholders consent for the proposals through postal ballots.

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