Indiabulls Real Estate to raise $600 mn

Indiabulls Real Estate today said it will raise $600 million (about Rs 2,954 crore) through qualified institutional placement to fund its business expansion plans.

Indiabulls Real Estate today said it will raise $600 million (about Rs 2,954 crore) through qualified institutional placement to fund its business expansion plans.

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"In order to meet financing and expansion objectives, the company proposes to raise funds aggregating up to USD 600 million or its Indian Rupee equivalent," Indiabulls Real Estate said in a filing to the Bombay Stock Exchange.

The company plans to raise the fund by allotting securities to qualified institutional buyers (QIBs) through institutional placement. "In order to sustain rapid growth, meet capital needs and to enter new businesses, the company needs to infuse additional capital into its existing and new affiliates," Indiabulls said.

The company has sought shareholder approval by way of postal ballot for the fund raising. An extraordinary general meeting of shareholders will be held on May 18 to consider the proposal. Shares of Indiabulls Real Estate closed at Rs 143.10, up 0.14 per cent, on the BSE.