Indiabulls realty raises $400 mn via GDRs

The Delhi-based property developer Indiabulls Real Estate has raised $400 million by selling global depository receipts (GDRs) "�- three-months after it was separated from the parent company, Indiabulls Financial Services.

The GDRs were priced at $10.32 a share (nearly Rs 412), a discount of Rs 41(about 9 per cent) a share compared with the share price of Rs 452.95 on the Bombay Stock Exchange.

The money raised by Indiabulls Real Estate includes $40 million from an over-allotment option as demand outstripped supply. In May, Indiabulls Financial Services raised $ 275 million through a GDR issue. Merrill Lynch was the sole book-runner to the issue.

Fund-raising by Indiabulls Real Estate comes at a time when a slew of Indian real estate developers are tapping the domestic and overseas markets to develop projects in the world's second-fastest growing economy.

Alternative Investment Market (AIM) saw Hiranandanis Hirco, Unitech and West Pioneer Developers raising funds in the recent months.

DLF, the Delhi-based real estate major, raised Rs 9,190 crore through an initial share sale, which will be listed on the stock exchanges tomorrow. Another developer, Housing Development and Infrastructure,

raised Rs 500-odd crore Omaxe and Kolte Patil are expected hit the markets in coming weeks.

Developers require funds as the growing economic is fuelling demand for residential and office spaces across the country.

Indiabulls Real Estates developments include housing projects in Chennai and in Mumbai. It is also developing two office buildings in Mumbai.

The money raised by Indiabulls Real Estate includes $40 million from an over-allotment option as demand outstripped supply.