Indiabulls Ventures zooms over 100% in one month

The board is scheduled to meet today consider preferential issue to certain foreign investor(s)

Indiabulls Ventures is locked in upper circuit for the third day in a row at Rs 109, up 5% on BSE, ahead of board meeting today to consider preferential issue of equity shares of the company, to certain foreign investor(s).

The stock of company engaged in financial services business has outperformed the market by surging 127% from Rs 48 on March 21, as compared to 0.17% rise in the S&P BSE Sensex.

On April 7, 2017, the board had approved preferential offer & issue of 38.86 million equity shares at an issue price of Rs 58.40 per equity share, for cash consideration, to Cinnamon Capital Limited, a foreign portfolio investor registered with the SEBI.

Indiabulls Ventures said it raise money to augment the long-term resources of the company meeting funding requirements for its business purposes.

On April 10, 2017, the company had allotted an aggregate of 33.6 million equity shares to promoter group entities (29.6 million equity shares) and to CEO & Whole-time Director (4 million equity shares), of the company, upon exercise/conversion of equivalent number of warrants. The company had fixed exercise price for each warrant at Rs 43.75.

Till 09:20 am; a combined 95,177 equity shares changed hands and there were pending buy orders for 2.39 million shares on BSE and NSE.