Indiabulls Real Estate would raise Rs 3,911 crore through the issue of shares and warrants to investors

The global investment firm Blackstone would contribute Rs 1,235 crore, while the Bengaluru-based Embassy Group will spend Rs 1,160 crore. On Friday, Indiabulls Real Estate said that the board has approved fundraising of Rs 3,911 crore through the issuing of shares and warrants to investors such as the Blackstone Group. and Embassy Group.

The global investment firm Blackstone would contribute Rs 1,235 crore, while the Bengaluru-based Embassy Group will spend Rs 1,160 crore. Following the conversion of the warrants, the Embassy Group will control 18.7%, while Blackstone will hold 12.4%. IBREL's regulatory statement claimed that the board approved fund-raising via preferential issue of equity shares and convertible warrants, on a private placement basis, for cash consideration, aggregating to approximately Rs 3,910.93 crore." The move is intended to recapitalize the company's balance sheet and position it for organic and inorganic expansion. These include capital expenditures for current projects and future launches, potential acquisitions, other working capital requirements, and general corporate purposes. The board has approved the issuance of 9,13,55,606 fully-paid equity shares of the company with a face value of Rs 2 apiece and are marketed at Rs 111.51.

It has also approved the issuing of 25,93,69,201 warrants, which are convertible into an equal number of equity shares at an exercise price of Rs 111.51.

These securities would be offered to select Embassy Group and Baillie Gifford entities, as well as entities controlled by funds managed by Blackstone Inc. affiliates (Blackstone Real Estate Fund), Quant Money Managers, Poonawalla Finance, and other financial investors.

The board's approval is subject to the consent of the company's shareholders and other necessary approvals.

In the statement, IBREL stated that the board has approved asset acquisitions for Rs 1,853 crore to re-energize the firm and propel development.

Sachin Shah, executive director of IBREL, stated, "We are pleased to announce the company's recapitalization, which includes four significant asset purchases that will strengthen our project pipeline.

We appreciate the ongoing support of our two largest shareholders. We are overjoyed to welcome a group of new blue-chip investors who have come on board and validated the firm and its growth possibilities. The cash will enable us to complete current projects and pursue new prospects. This investment is the culmination of the turnaround strategy that has been implemented over the previous 13 months.

Source: Money Control