Indiabulls Real Estate to raise Rs 2.8k crore through QIP

Indiabulls Real Estate to raise Rs 2.8k crore through QIPIndiabulls Real Estate Ltd, a leading reality firm in the country, is planning to raise Rs 2,820 crore for which the firm has received approval from its board of directors Monday.

It would issue equity shares of a face value of Rs 2 to qualified institutional buyers (QIBs) to fund its pending power project in Maharashtra. Morgan Stanley has been appointed as its book manager to the issue, coming within a week.

Indiabulls had also divested 28.6% equity shares of company, raising Rs 1,600 crore from LN Mittal and Farallon Capital. Real Estate major DLF too raised $783 million last week to meet its financial needs.

Company's promoters hold 25 per cent shares in the firm which may come down following issuance of qualified institutional placement (QIP) equity shares. Country's realty segment is under huge pressure due to slump in demand despite various monetary measures taken by government under the stimulus package.

Shares of the realty firm increased 39% to close at Rs 205 on Monday amid strong rally of stock market due to increased investor's confidence.