Indiabulls Real Estate secures Rs 3,911 crore investment from Blackstone, Embassy Group

Indiabulls Real Estate news: Indiabulls Real Estate has announced plans to raise Rs 3,911 crore through the issuance of shares and warrants to various investors, including the Blackstone Group and Embassy Group. This strategic move is aimed at bolstering the company's balance sheet and positioning it for both organic and inorganic growth initiatives.

According to the regulatory filing made by IBREL (Indiabulls Real Estate Ltd.) on Friday, the board has approved a "fund-raise via preferential issue of equity shares and convertible warrants, on a private placement basis, for cash consideration, aggregating to approximately Rs 3,910.93 crore."

Blackstone, a leading global investment firm, is set to invest Rs 1,235 crore, while the Bengaluru-based Embassy Group will infuse Rs 1,160 crore into Indiabulls Real Estate. Following the conversion of warrants, the Embassy Group will hold 18.7 per cent stake, while Blackstone will own 12.4 per cent of the company.

The funds raised will be utilised for various purposes, including capital expenditure for the completion of ongoing projects, funding new launches, proposed acquisitions, working capital requirements, and general corporate purposes.

The board has approved the issuance of 9,13,55,606 fully-paid equity shares of face value Rs 2 each at Rs 111.51 per share. Additionally, it has sanctioned the issuance of 25,93,69,201 warrants, convertible into an equivalent number of equity shares, at an exercise price of Rs 111.51.

These securities will be allotted to entities of the Embassy Group, Baillie Gifford, Blackstone Real Estate Fund, funds managed by Quant Money Managers, Poonawalla Finance, and other investors.

However, the board's decision is contingent upon the approval of the company's shareholders and other requisite clearances.

In addition to the capital infusion, IBREL has also disclosed asset acquisitions worth Rs 1,853 crore aimed at reinvigorating its business and driving growth. Sachin Shah, Executive Director of IBREL, expressed enthusiasm about the recapitalisation, stressing its role in facilitating project completion and the pursuit of new opportunities.

"We are excited to announce the recapitalisation of the company, which also includes four strategic asset acquisitions that boost our project pipeline," Shah stated. “The funds will allow us to complete our existing projects and pursue new opportunities. This investment is a culmination of the turnaround strategy that has taken place over the past 13 months.”