Farallon, LNM Will Invest Rs 1,580 crore

Indiabulls Real Estate has entered into an agreement with FIM and LNM India Internet Ventures, who will mutually invest Rs 1,580 crore. FIM is a foreign venture capital investor managed by Farallon Capital Management LLC and LNM India Internet Ventures is an investment body of LN Mittal group.

The investment will be by way of subscription to equity shares at Rs 66.67 per share in Sophia Power Company, an unlisted subsidiary of Indiabulls Real Estate engaged in the power sector, for a collective of 37.5 % of its post issue capital. FIM will invest Rs 987.50 crore for 23.4 % post issue stake and LNM India Internet Ventures invest Rs 592.50 crore for 14.1 % stake in Sophia Power.

Indiabulls Real Estate has invested Rs 395 crore at Rs 10 per share, and will hold 62.5 % of the post issue capital of Sophia Power. The company has also invested Rs 197.50 crore by subscribing to equity shares of Indiabulls Power Services, another unlisted subsidiary engaged in the power sector. The stakeholders propose merging Indiabulls Power Services into Sophia Power, with Indiabulls Real Estate holding 71.4 % in the merged company, with 17.9 % held by FIM and balance 10.7 % by LNM India Internet Ventures.

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