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Private Sector | Karnataka - India | PID: 202744
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Indiabulls Real Estate's (IBREL) board has approved raising Rs 3,911 crore through the issuance of shares and warrants to investors, including the Blackstone Group and Embassy Group. Blackstone will invest Rs 1,235 crore, while the Bengaluru-based Embassy Group will infuse Rs 1,160 crore.
The move is will position the company for organic and inorganic growth purposes, and would allow it to pursue new growth opportunities. These include capital expenditure for the completion of existing projects and new launches, while also covering proposed acquisitions, other working capital requirements. The Embassy Group will hold 18.7 percent, and will remain as the largest shareholder with 18.7 percent ownership, while Blackstone will own 12.4 percent, post warrant conversion.
Embassy's Investment will be Rs 10 crore in equity shares, and Rs 1,150 crore in warrants. This investment is to provide a pipeline of assets to IBREL for future growth while bringing investors to the shareholder roster.
The board has approved the issuance of 9,13,55,606 fully-paid equity shares at Rs 111.51, and has also approved the issuance of 25,93,69,201 warrants at an exercise price of Rs 111.51. These securities would be issued to entities of the Embassy Group, Baillie Gifford, entities controlled by funds managed by affiliates of Blackstone, (Blackstone Real Estate Fund), funds managed by Quant Money Managers, Poonawalla Finance and other investors.
The board's nod is subject to the approval of the shareholders of the company and other requisite clearances. The board has approved asset acquisitions worth Rs 1,853 crore to re-energise the business. The Embassy Group's asset or project contribution includes 31-acre/ 93-villa proposed project in North Bengaluru, 0.5 msf highrise residential project in Whitefield, Bengaluru, 1.4 msf proposed high-rise project in Chennai which is part of an existing township, and acquisitions basis valuations at an 8 to16 percent discount to average of two independent valuations. Embassy will provide IBREL a right of first opportunity to acquire identified existing assets of Embassy and potential future assets subject to mutually agreed terms and conditions.
| Updated on: 12 - Apr - 2024
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