Last week, Indiabulls Real Estate said it had signed a term sheet agreement with Blackstone Group Inc to offload its entire direct/indirect stake in existing joint venture companies (JVs) at an aggregate equity value of approximately Rs 4,420 crore.
US-based Blackstone will buy the Indiabull’s stake in their joint ventures--Indiabulls Properties Private Limited and Indiabulls Real Estate Company Private Limited (both owning commercial assets at Lower Parel, Mumbai), Yashita Buildcon Ltd and Ashkit Properties Ltd (both owning office properties in Gurugram).
ALSO READ: ICRA downgrades Indiabulls Housing long-term ratings to AA+ from AAA
Indiabulls said the aim is to “embark on a clear and simple path to achieve zero net debt in the current financial year through strategic divestment of its stakes in certain commercial and leasing business assets”.
On August 30, CARE Ratings had revised the long-term rating of Indiabulls Real Estate to CARE A from CARE AA-. The revision in ratings factors in the sluggishness in the real estate residential market leading to slower progress of sale of residential units and collections as compared to envisaged levels in FY2018-19. This has resulted in delay in project execution and cancellation of bookings in some of the company’s real estate projects. Further the rating factors in the lack of stable lease rentals received in the past owing to the management’s plans to divest its stake in commercial and leasing business assets, it added.
ALSO READ: Nestle India set to replace Indiabulls Housing in Nifty next month
At 11:44 am; the stock was trading 6 per cent lower at Rs 58.65 on the BSE, as compared to 0.25 per cent rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 4.4 million shares changed hands on the NSE and BSE so far.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in