In May this year, the company has announced buyback of up to 2.6 crore fully paid-up equity shares of Rs 2 each of the company at prevailing market price on stock exchanges at a price not exceeding Rs 240 apiece, up to an aggregate amount not exceeding Rs 624 crore.
India Bulls Real Estate said the assets sold are non-core real estate business operations for the company and will realise a gross value of approximately Rs 850 crore, subject to adjustments, if any, basis certain assets and liabilities on closing (transaction).
The company had earlier proposed to issue secured, redeemable, non-convertible debentures of face value Rs 10 lakh each aggregating Rs 480 crore on a private placement basis.
In a BSE filing, the Mumbai-based developer has said that it "proposes to issue secured, redeemable, non-convertible debentures of face value Rs 10 lakh each aggregating Rs 480 crore, on a private placement basis."
The real estate company informed exchanges on Tuesday that a meeting of the board of directors will be held on May 18 to consider the proposal of buyback of equity shares.
The market breadth was in favour of the declines with 778 stocks advancing while 793 declined and 464 remained unchanged. On the other hand, in the BSE, 874 stocks advanced and 839 declined and 73 remained unchanged.
The market breadth was in favour of the advances with 920 stocks advancing while 789 declined and 342 remained unchanged. On the other hand, in the BSE, 1358 stocks advanced and 1249 declined and 132 remained unchanged.
The Nifty Realty index was the only major gainer among sectoral indices, rising nearly 2 percent intraday.
Its net profit stood for the quarter at Rs 1,648.3 crore, as against Rs 79.8 crore in the year-ago period.
The market breadth was in favour of the declines with 798 stocks advancing while 739 declined and 489 remained unchanged. On the other hand, in the BSE, 906 stocks advanced and 705 declined and 65 remained unchanged.
The company's total revenue also rose to Rs 2,028 crore in the fourth quarter from Rs 437 crore in the corresponding period of the previous year.
37 stocks hit fresh 52-week high including Ashok Leyland, Cyient, Indiabulls Ventures, Mahindra & Mahindra, Mindtree, Mphasis and Zydus Wellness among others.
The top Nifty gainers included Cipla which was jumped 4 percent while Grasim Industries gained 2.5 percent. Hero MotoCorp and Indiabulls Housing Finance along with Kotak Mahindra Bank were the other gainers.
"Substantial part of sale proceeds would be utilised towards repayment of existing debts of the company and its subsidiaries, and for achieving sustainable long term growth and for further strengthening of their on-going businesses," it said. The transaction is expected to be completed by March 31.
Board will consider reorganisation/ restructuring of the existing residential and commercial office leasing businesses, and to take appropriate decisions.
The annual rental income of the Mumbai-based developer currently stands at Rs 720 crore with a leasable area of 5 million sq ft, according to an investors presentation.
Indiabulls Real Estate on Thursday announced that it will acquire a prime commercial building in Gurgaon having a leasable area of 2.5 lakh sq ft for an undisclosed amount.
The market breadth was in favour of the advances on Thursday morning with 805 stocks advancing as against 779 declines while 417 remained unchanged. On the other hand, 1152 stocks advanced and 961 stocks declined while 84 remained unchanged on the BSE.
The market breadth was in favour of the advances on Wednesday morning with 960 stocks advancing as against 649 declines while 389 remained unchanged. On the other hand, 1357 stocks advanced and 868 stocks declined while 89 remained unchanged on the BSE.
Sustaining above 10,550 levels on tradable basis Nifty can rally initially towards 10,720 and then 10,840 levels. On the downside, the index has support at 10,400 which was last week low and a break below the said level may trigger a decline towards 10,320 and then 10,230 levels, says Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management.
The market breadth was in favour of the declines on Tuesday morning with 780 stocks advancing as against 844 declines while 378 remained unchanged. On the other hand, 1222 stocks advanced and 1149 stocks declined while 76 remained unchanged on the BSE.
The company's total income fell to Rs 826.4 crore in the second quarter of this fiscal compared with Rs 911.9 crore in the corresponding period of the previous year.
Nifty on Tuesday was trading in the green up 22.85 points at 10, 012 led by Reliance Industries, Infosys and Lupin which were among the top gainers, up 1.58 percent, 1.34 percent and 2.29 percent respectively.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Sun Pharma and Escorts and can sell Indiabulls Real Estate, United Spirits and Strides Shasun.
Investors are advised to stay with quality stocks and avoid leverage play at current levels especially when there is lingering concerns of growth and valuations have already ballooned to levels which most experts might call it stretched if earnings growth failed to pick up.