Indiabulls Real Estate to begin buyback process of equity shares up to Rs 500 crore
The company said that the proposed buyback is expected to be completed in the next quarter or in the one after that, depending on the date of the relaxation of the ongoing 21-day lockdown to curb the spread of coronavirus.
Indiabulls Real Estate Ltd has informed the bourses that it will soon begin the buyback process of equity shares worth up to Rs 500 crore.
The company said that the proposed buyback is expected to be completed in the next quarter or in the one after that, depending on the date of the relaxation of the ongoing 21-day lockdown to curb the spread of coronavirus.
Indiabulls is involved in construction and development of residential, commercial and SEZ projects across the major metro cities in the country.
In October last year, Indiabulls Real Estate Limited board approved buyback of up to 5 crore fully paid-up equity shares of a face value of Rs 2 each.
This represented about 11 per cent of its total existing paid-up equity capital at Rs 100 for each share, aggregating to total buyback size of Rs 500 crore through the tender offer route.
In a regulatory filing, it said that “post-completion of the on-going scheme of arrangement of Chennai assets on March 19, 2020, the company is eligible to launch the buyback.”
The company further said that the board-constituted buyback committee has advised the management to start the process of obtaining approval from shareholders through the postal ballot to implement the proposed buyback.
In December last year, the country’s leading real estate company Indiabulls Real Estate Ltd had announced that it will be selling its complete stake in Mariana Infrastructure Ltd along with commercial assets in Mumbai to The Blackstone Group for around Rs 810 crore.
Indiabulls Real Estate Ltd consolidated net profit for the third quarter ended December 2019 stood at Rs 49.27 crore.
The total income of the company was marginally up by 2.33 per cent to Rs 1,317.70 crore as against Rs 1,287.59 crore in the same quarter a year ago.