Indiabulls Real Estate shares soar 22.5% as company plans to raise Rs 540 crore

Stocks of Indiabulls Real Estate soared 22.5% on Monday as the company said it will seek shareholders' nod to raise a total of Rs 538 crore from promoters, including convertible warrants worth Rs 290 crore. 

The stock zoomed 22.47% to Rs 51.50 at BSE. On the NSE, it surged 20.83% to Rs 50.75. 

The company's board, during its meeting held on Saturday, approved 3.67 crore equity shares and 4.36 crore convertible warrants, Indiabulls Real Estate said in a BSE filing yesterday. 

The move is part of effort for augmenting "the long-term resources of the company for meeting funding requirements for its business purposes," and also reflects the confidence that the promoters have, it added. 

"The board approved issuance of 4,36,00,000 (four crore thirty six lakh) warrants, convertible into equivalent number of equity shares of Rs 2 each to the promoter group entities at an issue/conversion price of Rs 67 per share," it said. At this price, these warrants would be worth over Rs 290 crore. 

The shareholders' approval for the proposal would be sought during the meeting on July 20. 

"The total equity investments by the promoters would amount to Rs 538 crore in the company, post conversion of warrants," it added.