6 April 2024 – Indiabulls Real Estate has announced its plan to raise Rs 3,911 crore through a strategic investment from renowned investors, including Blackstone Group and Embassy Group. This move is expected to bolster the company’s financial position and support its growth initiatives.
According to a regulatory filing, Indiabulls Real Estate’s board has approved a capital infusion of Rs 3,911 crore through the issuance of shares and warrants to various investors. Global investment firm Blackstone Group is set to invest Rs 1,235 crore, while Bengaluru-based Embassy Group will contribute Rs 1,160 crore. Post the conversion of warrants, Embassy Group will hold 18.7%, and Blackstone will possess 12.4% of the company.
The capital raised will be utilized for multiple purposes, including recapitalizing the balance sheet, funding ongoing projects, launching new developments, and potential acquisitions. The board has greenlit the issuance of fully-paid equity shares and convertible warrants at specific prices to the investors, subject to shareholder approval and regulatory clearances.
Additionally, the company has approved asset acquisitions worth Rs 1,853 crore to enhance its project pipeline and drive growth. Sachin Shah, Executive Director of IBREL, expressed gratitude for the support of existing shareholders and welcomed new investors. He emphasized that the funds would enable the completion of existing projects and pursuit of new opportunities, aligning with the company’s turnaround strategy.
