Indiabulls Real Estate Ltd has raised $550 million by selling shares at 185 rupees each, two sources involved in the deal said on Tuesday. It was the second such Indian offering in a month, marking interest for Indian equities.

The company, which opened the up to $600 million issue on Monday, got subscriptions worth $2 billion on the same day, a company source and a banking official said. It plans to use the funds for projects and acquiring new businesses.

"There was overwhelming response. We mopped it up quicker than anticipated," the banking source, who declined to be named, said. Private equity firm TPG Capital and Fidelity were among the investors, the sources said.

Morgan Stanley was the lead manager for the offer.

The successful closure follows rival Unitech's $325 million share sale last month. The founders of leading listed real estate firm DLF sold shares for $783 million last week.

Equity market activity in India is picking up after a 15-month drought. Indian IPO volumes tumbled after the first quarter of 2008 with initial share sales at just $10 million over the last two quarters, Thomson Reuters data showed.

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