Indiabulls Real Estate Gets INR 1160 Crore Boost from Embassy Group

Indiabulls Real Estate just got a big financial boost of Rs 1,160 crore from the Embassy Group. This deal brings fresh funds into Indiabulls through a special arrangement called preferential allotment, setting the stage for new real estate projects in South India.

Deal details

Embassy Group is putting Rs 10 crore directly into shares and another Rs 1,150 crore into something called warrants, with a part of the payment made upfront and the rest over the next 18 months. This deal makes Embassy Group the biggest owner of shares in Indiabulls Real Estate, holding 18.7% of the company. The price per share for this deal was set at Rs 111.51, following market rules and a valuation by one of the big accounting firms.

New Projects in the pipeline

This investment means Indiabulls Real Estate can start working on several big projects, including a luxury villa community in North Bengaluru, a high-rise apartment building in Whitefield, Bengaluru, and another large apartment project in Chennai. These projects were picked up at a good deal, costing 8-16% less than what independent valuations suggested they were worth.

What’s Next for Indiabulls and Embassy Group?

The deal also includes plans for Embassy Group to give Indiabulls Real Estate the first chance to buy some of Embassy's current and future real estate projects. Plus, Jitendra Virwani, the head of Embassy Group, will join the board of directors at Indiabulls Real Estate.

This big agreement still needs the OK from Indiabulls Real Estate’s shareholders and to pass some regulatory checks. Legal advice for this deal came from Khaitan & Co., working on behalf of the Embassy Group.