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Indiabulls Real Estate drops on profit booking

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Capital Market
Last Updated : Apr 18 2017 | 2:13 PM IST

Indiabulls Real Estate lost 0.94% to Rs 146.75 at 12:37 IST on BSE, with the stock sliding on profit booking after recent sharp rally.

Meanwhile, the S&P BSE Sensex was up 210.87 points or 0.72% at 29,624.53. The S&P BSE Mid-Cap index was up 137.86 points or 0.96% at 14,524.93.

On the BSE, 59.21 lakh shares were traded on the counter so far as against the average daily volumes of 47.38 lakh shares in the past two weeks. The stock had hit a high of Rs 155 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 143.05 so far during the day. The stock had hit a 52-week low of Rs 54.10 on 18 April 2016.

Shares of Indiabulls Real Estate had rallied 66.74% in the preceding five trading sessions to settle at Rs 148.15 yesterday, 17 April 2017, from its closing of Rs 88.85 on 7 April 2017.

The stock had jumped 39.96% in a single trading session yesterday, 17 April 2017 to settle at Rs 148.15, after the company during market hours on that day said its board considered various proposals for restructuring the business.

Indiabulls Real Estate's board considered the possibility of streamlining its existing 'residential', 'commercial' and 'leasing' businesses by segregating 'commercial & leasing' business carried on by itself and/or through its special purpose vehicles (SPVs) and vesting the same into Indiabulls Commercial Assets (ICAL) and restructuring/reorganizing its businesses.

Among other recent developments, Indiabulls Real Estate announced an early closure of share buyback offer on 10 April 2017. The company bought back 3.40 crore equity shares utilizing a total of Rs 272.05 crore (excluding transaction costs), which represents 50.38% of the maximum buyback size.

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The equity shares were bought back at an average price of Rs 79.91 a share. Post buyback offer, the promoters' stake in Indiabulls Real Estate increased to 50.92% from 47.5% earlier. While, public shareholding declined to 49.08% from 52.5%.

On consolidated basis, Indiabulls Real Estate's net profit fell 13.7% to Rs 58.58 crore on 58.8% decline in net sales to Rs 291.21 crore in Q3 December 2016 over Q3 December 2015.

Indiabulls Real Estate is a real estate development company with development projects spread across office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, special economic zones and infrastructure development.

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First Published: Apr 18 2017 | 12:40 PM IST

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