Indiabulls Real Estate raises $400mn via GDRs

Indiabulls Real Estate (IREL), Delhi-headquartered property developer, has raised $400 million selling global depository receipts (GDRs), just over three-months after it was separated from parent Indiabulls Financial Services.

The GDRs were priced at $10.32 apiece (nearly Rs 412), a discount of Rs 41 (about 9%) a share compared to the prevailing share price of Rs 452.95 on the Bombay Stock Exchange today.The money raised by IREL includes $40 million from an over-allotment option as demand outstripped supply.

In May, group company Indiabulls Financial Services raised $275 million through a GDR issue.

Merrill Lynch & Co was the sole book-runner for the GDR. The fundraising by Indiabulls Real Estate comes at a time when a slew of Indian real-estate developers are tapping the domestic and overseas markets to develop projects in world’s second-fastest growing economy.

Read more in The Business Standard article.