Indiabulls Real Estate to raise ₹3,911 cr via preferential allotment

Bengaluru: Indiabulls Real Estate Ltd. (IBREL) said its board has approved raising ₹3,911 crore through a preferential allotment from a group of investors, including Embassy Group, global asset manager Blackstone Real Estate Fund and UK-based investment firm Baillie Gifford & Co.

Quant Active Fund, Poonawalla Finance, Yash Shares & Stock, Capri Global, Maybank, Micro Labs and Aalidhra are some of the other investors.

While Bengaluru-based developer Embassy Group will invest ₹10 crore in equity shares and an additional ₹1,150 crore in warrants, Blackstone Real Estate Fund will infuse ₹1,235 crore — ₹375 crore in equity shares and ₹860 crore in warrants. Baillie Gifford has committed to investing ₹209 crore in equity shares of Indiabulls Real Estate.

Post conversion of warrants, Embassy Group will hold 18.7%, while Blackstone and Baillie Gifford will hold 12.4% and 8.6%, respectively.

IBREL in a stock exchange filing Friday night also said the board has approved asset acquisitions worth ₹1,853 crore to re-energize the business and fuel growth. It plans to acquire three projects in the southern markets of Bengaluru and Chennai.

The company will be re-named as Equinox India Developments Ltd.

"We are excited to announce the recapitalization of the company, which also includes four strategic asset acquisitions that boost our project pipeline. We are grateful for the constant support of our two largest shareholders,” said Sachin Shah, executive director, IBREL.

"We are thrilled that we have a roster of new blue-chip investors who have come on board and validated the company and its growth prospects. The funds will allow us to complete our existing projects and pursue new opportunities. This investment is a culmination of the turnaround strategy that has taken place over the past 13 months,” he added.

Embassy Group chairman Jitendra Virwani said, “Being the largest shareholder, our commitment to the IBREL platform remains intact. This investment is to provide a pipeline of assets to IBREL for future growth while bringing prestigious investors to the shareholder roster. The transaction also offers growth to the listed entity by penetrating the key south Indian markets of Bengaluru and Chennai.”

Virwani will be appointed as Embassy’s nominee director to the IBREL board.