Indiabulls to use `865-cr QIP proceeds for land acquisition, debt reduction
Further proposes to maintain sufficient liquidity, long-term working capital, refinancing/repayment/pre-payment of the borrowings
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New Delhi: Indiabulls Real Estate on Monday said it will utilise Rs 865 crore raised by issuing shares to institutional investors mainly for land acquisition and debt reduction.
The Mumbai-based firm on March 7 had launched its QIP (Qualified Institutional Placement) issue and closed it on April 12. In a regulatory filing, Indiabulls Real Estate Ltd (IBREL) said it has completed a capital raise of Rs 865 crore at Rs 101.10 per equity share through QIP. Trading of these shares commenced on Monday on NSE and BSE. The fundraising resulted in an overall 15.8 per cent dilution for current shareholders. "The company proposes to maintain sufficient liquidity and use the net proceeds for various purposes, including but not limited to capital expenditure (including the acquisition of land, land development rights or development rights), long-term working capital, refinancing/repayment/pre-payment of the borrowings of the company and/or its Subsidiaries and general corporate purposes," IBREL said.
Last week, the company had informed that the fundraising committee of the board of directors approved the issue and allotment of 8,55,59,435 equity shares to qualified institutional buyers at an issue price of Rs 101.10 per share, aggregating to a little over Rs 865 crore. Authum Investment and Infrastructure Ltd, Nippon Life India Trustee Ltd-A/C Nippon India Multi-Cap Fund, Copthall Mauritius Investment Ltd, Morgan Stanley Asia (Singapore), Societe Generale and Baillie Gifford Pacific Fund participated in the QIP issue. "We appreciate the ongoing confidence and support of the investment community amid ongoing geopolitical headwinds and turbulent markets," IBREL Non-Executive Chairman and Independent Director KG Krishnamurthy said.
IBREL is a publicly listed real estate company with a well-diversified presence in residential real estate development across the price spectrum from mid-income to premium to the super luxury space. It has a presence in Mumbai Metropolitan Region and National Capital Region.
