livemint-Shares of Indiabulls Real Estate Ltd rose over 30% on Monday after it said that its board has decided to increase promoter stake in the company by 10%.
The stock touched a high of Rs.56.15 apiece and registered its sharpest gain since 18 May 2009. The company will hold an extraordinary general meeting on 20 July to seek shareholder approval, it said in a notice to BSE.
The real estate firm will raise the money through a preferential allotment of 5% equity shares and 5% warrants at a price of Rs.67 per share to co-founder Sameer Gehlaut. The fund will be used to pare the company’s debt of Rs.5,480 crore.
Gehlaut, co-founder and chairman of the Indiabulls Group, will invest Rs.538 crore in Indiabulls Real Estate, raising his stake to 37% from 27% a year after the three founders of the group separated their business.
The investment is Gehlaut’s first significant infusion of equity into the group after the reorganization. Gehlaut now controls the home finance, real estate, securities and wholesale trading business segments of the group, headed by its flagship companies Indiabulls Housing Finance Ltd, Indiabulls Real Estate, Indiabulls Securities Ltd and Indiabulls Wholesale Services Ltd.
Rajiv Rattan and Saurabh Mittal, the other two co-founders, head the power business, the company said.
Shares of Indiabulls Real Estate closed 30.20% higher at Rs.54.75 apiece on BSE, while the benchmark Sensex closed 1.52%, or 414.04 points, higher at 27,730.21.