Indiabulls lines up buyback at Rs 210 a share

Financial services company Indiabulls Financial Services on Friday announced share buyback through open market purchases, at a price not exceeding Rs 210 per share. The company proposes to buy back shares for upto 10 per cent of the paid-up capital and free reserves.

Indiabulls' equity capital, including reserves, is nearly Rs 1,000 crore of which Rs 600 crore was raised in the last six months and the same cannot be used to buy back shares.

The company has made a Global Depository Receipt (GDR) offering in February this year. Capital international, through one of its funds, recently acquired 5.23 per cent stake in the company.

Fidelity International, Merill Lynch, Lloyd George, Farollon capital are the other large institutional shareholders in Indiabulls.

Indiabulls is a leading retail finanical services company providing financial products and services, through its countrywide network of over 270 offices spread across 90 cities.

The company, along with its subsidiaries, offers consumer loans, brokerage and depository services apart from mutual fund distribution. The company is also engaged in real estate development.

The company's second-quarter net profit grew 46 per cent to Rs 59 crore, while revenues grew 58 per cent to Rs 165 crore.

The company reported revenues of Rs 249 crore and net profit of 102 crore for the first half of current fiscal. Indiabulls stock ended on Friday at Rs 168.55, up 1.97 per cent from its previous close.

About 17 lakh shares were traded on the Bombay Stock Exchange, up from the last two week's average of 15.66 lakh shares.