Indiabulls Real Estate has been hitting new highs today; first it was at Rs.114 and now at Rs.117.35. It remains firmly in the green, up some 10% at Rs.116.10.

The market is thrilled with the company’s restructuring. It has announced that it demerging the company into two verticals – commercial leasing and residential development. It will be creating a holding company for commercial assets business and this will be eventually either demerged or it could look for a strategic investor.

The commercial leasing business has 5.2 million square feet of office space which can be leased and this makes up for 25% of overall sales revenue of the company. This commercial venture is expected to generate Rs.690 crore worth of annuity revenue.

The company said the object of this restructuring is to bring greater focus on each of the said business segments.