Indiabulls Real Estate surged 26.99% to Rs 53.40 at 14:08 IST on BSE after the company said that its board of directors approved the preferential allotment of shares of the company to the promoter group entities.
The announcement was made on Sunday, 21 June 2015.
Meanwhile, the BSE Sensex was up 363.58 points, or 1.33%, to 27679.75.
On BSE, so far 85.07 lakh shares were traded in the counter, compared with an average volume of 9.04 lakh shares in the past one quarter.
The stock rose 29.13% at the day's high of Rs 54.30 so far during the day. The stock rose 8.44% at the day's low of Rs 45.60 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 19 June 2015, sliding 26.16% compared with 1.19% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 40.01% as against Sensex's 4.05% fall.
The small-cap company has an equity capital of Rs 85 crore. Face value per share is Rs 2.
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, which is a premium of 59.33% based on the closing market price of Rs 42.05 at BSE on Friday, 19 June 2015.
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 123.48% to Rs 93.13 crore on 84.49% 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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