Embassy Group Invests In Indiabulls Real Estate Via Preferential Allotment
Embassy Group, the largest shareholder in Indiabulls Real Estate, has invested Rs 1,160 crore through a preferential allotment of shares and warrants. Of this, 25 per cent is upfront, and the balance will be invested over 18 months. The floor price of the issuance was Rs 111.51 per share. It has also contributed several assets in Bengaluru and Chennai to Indiabulls at an 8-16 per cent discount to the average of two valuations. The assets include a 31-acre land in North Bengaluru where a project with 93 villas is proposed, a 5 lakh square feet residential project in Whitefield, and a 1.4 msf proposed high rise in Chennai. Embassy to remain as the largest shareholder with 18.7% ownership (on a fully diluted basis). Future Asset Contributions: Embassy to provide IBREL a right of first opportunity to acquire identified existing assets of Embassy and potential future assets subject to mutually agreed terms and conditions. Board Nomination: Jitendra Virwani to be appointed as Embassy’s nominee director to the Board of Directors of IBREL. Jitendra Virwani, Chairman & Founder of the Embassy Group said, “Being the largest shareholder, our commitment to the IBREL platform remains intact. This investment is to provide a pipeline of assets to IBREL for future growth while bringing prestigious investors to the shareholder roster. The transaction also offers growth to the listed entity by penetrating the key south Indian markets of Bengaluru and Chennai.”
Tags : Embassy Group Indiabulls Real Estate Jitendra Virwani IBREL south Indian markets ownership valuations