Indiabulls Extend The Closing Date Of The Issue By A Day

Laxmi Mittal-backed Indiabulls Real Estate managed to raise $259 million on the Singapore Stock Exchange, a day after the scheduled closing of its REIT’s issue, Indiabulls Properties Investment Trust.

India’s fourth largest real estate developer sold 353 million shares at $1 per unit, out of which Lakshmi Mittal had committed 91 million shares.

The sale was to realize $278 million. The issue, which was to close on June 5, 2008, was delayed by a day on account of it being under subscribed.

If market experts are to be believed, weak sentiment across the global real estate market led to under subscription of the retail portion. A minimum of 1,000 investors need to subscribe to successfully close an issue.

The issue was subscribed by only 700 investors on June 5. Following this, the company decided to extend the closing date of the issue. However, when contacted, Gagan Banga, the group spokesperson for Indiabulls, said a delay in getting regulatory approval forced Indiabulls to extend subscription process for retail investors by a day.


  1. Posted June 24, 2008 at 1:43 am | Permalink

    The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
    The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???For more view-

  2. Posted June 27, 2008 at 12:26 am | Permalink

    Indiabulls Real Estate Limited has informed the Exchange that “Indiabulls Power Services Limited (IPSL), a subsidiary of Indiabulls Real Estate Limited (the Company), has entered into a Memorandum of Understanding (MOU) with Government of Jharkhand for setting up of 1320 MW (2 x 660 MW) power project, in the State of Jharkhand. In terms of the MoU, the Government of Jharkhand shall facilitate and extend all reasonable help and assistance to IPSL for setting up the aforesaid project including providing all state level clearances, helping in allotment of a captive coal block, acquiring land and allotting water for the project. As per the MoU, state of Jharkhand shall have the right to purchase up to 25% of power delivered from the proposed project under the Power Purchase Agreement at a tariff to be determined by appropriate Regulatory Commission and IPSL will have the right to sell the balance power outside the State or to the bulk consumers within the State”.

  3. Posted July 16, 2008 at 6:34 am | Permalink

    But at present if we see that stock level the down fall is coming day by day which is showing that the particular down level to be very panic either it is Real estate stock level or other.

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