The shareholders of Indiabulls Real Estate Ltd (IBREL) have approved the company's $600 million fundraising exercise. The funds will be raised through share sale to qualified institutional buyers (QIBs), and will be used to fund its projects and acquire new businesses. The
allotment is expected to be made by May 22 and the issue was opened on Monday, reports Reuters. The lead book runner to the issue is Morgan Stanley.
Sensex rose by 2,100 points today ahead of the upper circuit which was breached today, closing at 14,272 points. IBREL scrip was one of the biggest gainers in the market, going up by more than 38% to Rs 205.
Two of India's largest real estate firms have recently raised funds from the market, showing that there is appetite in the market. While DLF raised $783 million through stake sale by promoters, Unitech raised $325 million through a qualified institutional placement (QIP), which saw participation of private equity and hedge funds. Other real estate firms eyeing to raise funds through this route are HDIL and Sobha Developers.