Indiabulls Real Estate Limited Buyback Offer May 2018

Indiabulls Real Estate Limited Buyback Offer

(i) Indiabulls Real Estate was incorporated in the year 2005 with the focus on construction and development of residential, commercial & SEZ projects across major Indian Metros & London. It is the 3rd largest real estate company in India by net worth and assets, with a total Gross Development Value of ₹349.6 billion (US$5.4 billion) and net worth of ₹72.18 billion (US$1.1 billion), as of June 30, 2015.

(ii) Indiabulls Real Estate has a presence in key Indian metros—Mumbai, Delhi and Chennai. Currently, it has 10 ongoing projects in India with a total saleable area of 30.14m sqft, and 5 new projects are planned to be launched shortly with a total saleable area of 7.87 m sqft. Additionally, the company has a fully paid for a land bank of 1,017 acres & also possesses 2,588 acres of SEZ land at Nashik, Maharashtra.

(iii) Indiabulls Real Estate has delivered two commercial towers in Mumbai—One Indiabulls Centre & Indiabulls Financial Centre with over 3m sqft space, apart from delivering projects in Madurai, Ahmedabad, and Thane. Recently, Indiabulls Real estate acquired the prime property, 22 Hanover Square in central London for ₹16.3 billion (US$250 million).

Buy Back Offer Deal:

Buyback Type: Open Offer
Buyback Offer Amount: ₹ 624 Cr
Date of Board Meeting approving the proposal: May 18 2018
Date of Public Announcement: May 18 2018
Buyback Offer Size: 5.45%
Buyback Number of Shares: 2.6 Cr
FV: 2
Buyback Price: ₹ 240 Per Equity Share

Details of Buyback:

Indiabulls Real Estate Limited Board has approved a proposal for buyback from the Open Market of up to 2.6 Cr Equity shares at Rs 240 per share, aggregating Rs 624 Cr, where maximum size represents 9.91 percent of the aggregate of the company’s paid-up equity capital and free reserves.

How to Participate in buyback?

(i) Indiabulls Real Estate Limited Buyback Offer is an Open Market BuyBack. (ii) In this method of share buyback, the company buys its own stocks from the market. This transaction happens through the company’s brokers. This repurchase program happens for an extended period of time as a large block of shares needs to be bought. The company is under no obligation to conduct the repurchase program after the announcement. The company has the option to cancel it. Also, it can make changes in the repurchase program according to company’s situations and needs. If this method is effectively implemented, it can prove to be very cost effective.


Review and Recommendation of Indiabulls Real Estate Limited Buyback from our side is:Rating: 2/10 Fair: 1-5 Good: 5-7 Excellent: 7-10

Registrar Contact Details:

Karvy Computershare Private Ltd. Karvy Selenium Tower B, Plot No. 31-32, Gachibowl Hyderabad - 500032, Telangana Phone No. 040-67162222, 67161500 Website.

Company Contact Details:

Indiabulls Real Estate Limited M - 62 & 63, First Floor, Connaught Place, New Delhi - 110001 Email Id. Website.


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