Shares of Indiabulls Real Estate surged over 42 percent percent intraday on Monday as investors placed positive bets following the company's announcement of a restructuring exercise.
“The company's board in its meeting today considered the possibility of streamlining its existing ‘residential', ‘commercial' and ‘leasing' businesses by segregating ‘commercial & leasing' business carried on by itself and/or through its SPVs and vesting the same into ‘Indiabulls Commercial Assets Ltd' (ICAL),” the company said in a notification to the exchanges.
The company’s management told CNBC-TV18 that it will either look for strategic partner or demerge the commercial leasing business.
The company further outlined that it may consider REIT listing in India and was looking at statutory changes for the same.
In the recent past, there have been some marquee deals in this space. Government Investment Corporation (GIC) of Singapore recently took a stake in the commercial real estate business of DLF while Blackstone had bought into K Raheja Corp.
“Most large global investors have preferred to participate in the commercial / leasing market in India as the retail space has been going through a very sluggish phase with tepid demand. Markets are expecting value discovery for Indiabulls Real Estate through this move as was evident from the stock rallying by over 30% during the day," Angel Broking said in a report.At 15:14 hrs Indiabulls Real Estate was quoting at Rs 147.40, up Rs 41.55, or 39.25 percent on the BSE. It touched a 52-week high of Rs 150.90.