Four days after it was named in a Sebi order on the IPO scam, Indiabulls Financial Services Ltd, the listed entity that has stakes in more than half-a-dozen subsidiaries specialising in everything from non-banking finance to real estate, has decided to spin off its real estate subsidiary.
"All shareholders of IBFSL will be issued shares of Indiabulls Real Estate Limited in the ratio of 1:1, ie, for each equity share of the face value of Rs 2 fully paid up held in IBFSL, shareholders will be allotted one equity share of Indiabulls Real Estate Limited of a face value Rs 2 each, fully paid-up," a company release issued on Monday said.
The shares of the new company will be listed on the stock exchanges.
The new company will hold all the investments made by the group so far in the real-estate sector, including the 11 acres of Jupiter Mills land in Lower Parel, Mumbai acquired for Rs 276.6 crores (Rs 2.77 billion) and the 7.8 acres of Elphinstone Mills land in Lower Parel, purchased for Rs 441.75 crores (Rs 4.42 billion).
The company will also own over 115 acres of land for construction-development of township and housing project in Sonepat, Haryana.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group