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Indiabulls Real Estate jumps on buzz Blackstone may buy promoters' stake

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Capital Market
Last Updated : Jun 07 2019 | 10:04 AM IST

Indiabulls Real Estate rose 5.78% to Rs 139.20 at 9:27 IST after the company said its promoters plan to sell 14% stake to third party investors.

The announcement was made after markets on Thursday, 6 June 2019

Meanwhile, the S&P BSE Sensex was trading down 221.28 points or 0.56% at 39,308.44

On the BSE, 6.75 crore shares were traded on the counter so far as against the 2-week average of 12.50 lakh shares. The stock has hit a 52-week high of Rs 180.40 on 7 June 2018 and a 52-week low of Rs 63.05 on 6 February 2019.

Indiabulls Real Estate announced that in line with the company's promoters' strategy to focus on financial services in the long run, the promoters intend to dispose-off up to 14% of the fully paid-up share capital of the company (out of the aggregate 38.72% fully paid up share capital of the company, currently held by them) to third party investors.

Some media reports suggested that US-based investment firm Blackstone may acquire Indiabulls Real Estate's promoters' stake at an estimated enterprise value of around $1 billion. Blackstone might buy promoters' total 39% stake in Indiabulls Real Estate through a joint venture with Bengaluru-based realty firm Embassy Group, reports added.

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Indiabulls Real Estate's consolidated net profit fell 95% to Rs 108.61 crore on 43.2% decline in net sales to Rs 1821.55 crore in Q4 May 2019 against Q4 May 2018.

Indiabulls Real Estate has a diversified presence in both commercial and residential real estate development.

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First Published: Jun 07 2019 | 9:43 AM IST

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