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Indiabulls Real Estate drops on profit booking

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Capital Market
Last Updated : Jun 24 2015 | 12:01 AM IST

Indiabulls Real Estate lost 2.83% to Rs 53.20 at 09:45 IST on BSE, with the stock declining on profit booking after surging 30.2% yesterday, 22 June 2015 triggered by the company's preferential issue plan to promoter group entities.

Meanwhile, the BSE Sensex was up 89.73 points, or 0.32%, to 27,819.94

On BSE, so far 12.69 lakh shares were traded in the counter, compared with an average volume of 10.63 lakh shares in the past one quarter.

The stock hit a high of Rs 55.80 and a low of Rs 52.10 so far during the day. The stock hit a 52-week high of Rs 101.60 on 2 July 2014. The stock hit a 52-week low of Rs 41 on 18 June 2015.

The stock had underperformed the market over the past one month till 22 June 2015, falling 8.73% compared with 0.81% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 16.48% as against Sensex's 1.88% fall.

The small-cap company has an equity capital of Rs 85 crore. Face value per share is Rs 2.

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Shares of Indiabulls Real Estate surged by a staggering 30.2% to Rs 54.75 in a single trading session yesterday, 22 June 2015 after the company on Sunday, 21 June 2015 announced that the company's board of directors has approved the preferential allotment of its shares to the promoter group entities.

Indiabulls Real Estate announced that to augment the long-term resources of the company for meeting funding requirements for its business purposes and as a reflection of confidence that the promoters have in the future of the company, the board of directors of the company at its meeting held on Saturday, 20 June 2015, inter alia, approved the preferential offer and issue of up to 3.67 crore equity shares of Rs 2 each and up to 4.36 crore warrants, convertible into equivalent number of equity shares of Rs 2 each, to the promoter group entities at an issue/conversion price of Rs 67 per share.

The total equity investments by the promoters would amount to Rs 538 crore in the company post conversion of warrants, Indiabulls Real Estate said.

Indiabulls Real Estate's consolidated net profit jumped 123.5% to Rs 93.13 crore on 84.5% rise in total income to Rs 630.70 crore in Q4 March 2015 over Q4 March 2014.

Indiabulls Real Estate is one of the largest real estate company in India with development projects spread across high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development.

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First Published: Jun 23 2015 | 9:49 AM IST

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