Indiabulls Real is top gainer

Indiabulls Real Estate is the top gainer on the BSE, up 15.5% at Rs.48.55, closer to its intra day of Rs.49. Volumes are up almost two times at 35 lakh shares.

The stock is up after the company reported that its founder and promoter, Sameer Gehlaut is investing Rs.538 crore in the company, hiking his stake by 10% - taking it up from 27% to 37%. This stake hike is being done through preferential allotment.

The founder/promoter is hiking this stake through a combination of equity shares and convertible warrants at Rs.67/share v/s Friday’s closing price of Rs.42, which means he hiked his stake at a premium of over 59%.

The market is happy with this as a founder/promoter hiking stake in the company is always positive news and the fact that this money, which he is bringing in to strengthen the company’s balance sheet, giving it growth capital is perceived as good move. This fund infusion of the promoter will be used to enable the company to start delivery of 6 million square feet of real estate space in current fiscal. The fund infusion will also be used to reduce debt by around 20%.