According to reports, the US-based investment firm may purchase promoters' total 39 percent stake in Indiabulls Real Estate through a joint venture with Bengaluru-based realty firm Embassy Group.
Shares of Indiabulls Real Estate rallied as much as 7 percent intraday on June 7 after the reports made rounds that Blackstone is eyeing promoters' stake for an estimated value of about $1 billion.
According to reports, the US-based investment firm may purchase promoters' total 39 percent stake in Indiabulls Real Estate, for around Rs 140/150 per share, through a joint venture with Bengaluru-based realty firm Embassy Group.
Indiabulls Group is looking to exit the real estate business so that it can get regulatory approvals for the proposed merger of Indiabulls Housing Finance with the Lakshmi Vilas Bank.
"The company has been on this trajectory for a long time now since they started to sell its core assets in the Real estate market division. The sale to the Blackstone group has already been somewhat half of their overall business in the real estate division. The recent stake sale is 'part of the process'. We believe this company is now transforming itself into a financial industry focused player," said Nadeem, CEO at Epic Research.
"Nothing much has been developing in stock price since the last decade as it has been oscillating between 200 - 30 odd levels. Mostly traded between 100 - 30. This is a long consolidation. One should take advantage of the trading range and use a lower range around 110 - 120 to enter long for a target of 160. Stoploss can be around 105," he added
Sources said the talks between Blackstone and Indiabulls Group are at an advanced stage.At 0928 hrs, Indiabulls Real Estate was quoting Rs 138.25, up 5.05 percent on the BSE.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.