Shares of Indiabulls Real Estate zoomed over 10 per cent on Wednesday after the company said it will sell its London property to promoters for GBP 200 million (approximately Rs 1,800 crore) as part of its strategy to focus on its India business and cut debt.
Despite the company posting a 95 per cent decline in consolidated net profit for the fourth quarter of the last fiscal, the scrip jumped 10.23 per cent to close at Rs 116.35 on the BSE. During the day, it rose sharply by 13.40 per cent to Rs 119.70.
At the NSE, shares advanced 9.80 per cent to close at Rs 115.90.
On the traded volume front, 43.34 lakh shares of the company were traded on the BSE and over three crore shares on the NSE during the day.
The company's net debt stood at Rs 4,590 crore at the end of the fourth quarter of 2018-19 fiscal and the same would be reduced to Rs 3,000 crore following the proposed deal with promoters.
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"The company has decided to focus only on Mumbai and NCR markets, and hence has decided to divest Century Limited, the parent company that houses Hanover Square property, London," Mumbai-based Indiabulls Real Estate said in an analyst presentation.
"In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish, so the promoter has undertaken to buy the parent company of London asset for GBP 200 million," it added.
Meanwhile, Indiabulls Real Estate posted a 95 per cent decline in its consolidated net profit at Rs 108.56 crore for the fourth quarter of the last fiscal as against Rs 2,181.13 crore in the year-ago period, according to a regulatory filing.
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