Indiabulls announced a capital raise of ₹1,000.07 crore through the issuance of convertible warrants on a preferential basis. The company’s board approved the proposal at its meeting on June 3, allowing the issuance of up to 51.55 crore warrants at an issue price of ₹19.40 each, including a premium of ₹17.40 per warrant, according to livemint.com.
The convertible warrants will be offered to both promoter group entities and non-promoter investors. Each warrant is convertible into one fully paid-up equity share of Indiabulls. This move aims to strengthen the company’s capital base by leveraging preferential allotment, a common fundraising method in the Indian real estate sector, the report said.
This capital raise comes amid a broader trend of real estate firms seeking alternative funding routes to support ongoing projects and manage debt. Comparable deals in the sector have included preferential issuances and convertible instruments to attract both strategic and financial investors. Indiabulls’ ₹1,000 crore raise is among the larger recent fundraises in the real estate industry, reflecting investor interest in the company’s growth prospects.
The board’s approval on June 3 sets the stage for the formal issuance process, with the company expected to complete the allotment in the near term. Indiabulls shares will be closely watched by market participants as the issuance progresses, given the potential impact on shareholding patterns and capital structure, livemint.com reported.