The board of directors of Indiabulls Ventures and Indiabulls Real Estate on Friday approved a proposal to buy back shares worth up to ₹1,000 crore and ₹500-crore, respectively.

For Indiabulls Ventures, the buyback price is at a 50.6 per cent premium over Thursday’s closing price of ₹99.60 per share. The company’s stock closed at ₹103.50 apiece on Friday, up 3.92 per cent on the BSE.

The buyback is for up to 6.67 crore fully paid-up equity shares having face value ₹2 each of the company, representing 12.61 per cent of its total existing fully paid-up equity capital.

The buyback size being more than 10 per cent of company’s paid-up equity capital and free reserves will be subject to approval of shareholders by way of a special resolution, through a postal ballot, the company said in a regulatory filing.

The buyback is proposed to be made from all eligible existing holders/ beneficial owners of the equity shares (including persons who become shareholders by cancelling global depository receipts (GDRs) and receiving underlying equity shares), on a proportionate basis, as on the record date, to be decided at a later date.

According to the filing, the buyback size does not include applicable taxes/duties and other incidental and related expenses. The filing said the board has constituted a Buyback Committee and delegated powers to it to oversee and implement the buyback and to do all such acts, deeds, matters and things, including fixation of record date, as it may, in its absolute discretion, deem necessary.

IB Real Estate

In a regulatory filing, Indiabulls Real Esate informed that its board of directors on Friday “approved a proposal of ₹500 crore of buyback of up to five crore fully paid-up equity shares... representing approximately 11 per cent of its total existing paid-up equity capital, at ₹100 per share.”

The buyback would be done through the tender offer route, as prescribed by market regulator SEBI.