Indiabulls Financial demerges real estate biz, offers 1:1 in realty

Mumbai, May 01 (UNI) Indiabulls Financial Services Ltd(IBFSL) has decided to demerge its real estate business.

The demerger decision was made by the IBFSL Board of Directors of at its meeting here today, said an official release.

J M Morgan Stanley and Suresh A.Shroff&Co advised the board on the scheme of demerger,which proposes to demerge assets and liabilities of the real estate undertakings of IBFSL into Indiabulls Real Estate Limited with effect from May 1, 2006.

The release said that all shareholders of IBFSL would be issued shares of Indiabulls Real Estate Ltd in the ratio of 1:1. For each equity share of the face value of Rs 2 fully paid up, held in IBFSL, shareholders will be allotted one equity share of Indiabulls Real Estate Limited of face value of Rs 2 each, fully paid-up.

In addition, shareholders will receive corresponding number of shares in the demerged entity, which will allow them to participate equally in the growth area of real estate construction development business.

Besides, the shares of the Indiabulls Real Estate Ltd will be listed on the bourses in India, where IBFSL is currently listed, thus providing liquidity to all shareholders.

Indiabulls Real Estate Ltd will include IBFSL's investments in the real estate undertakings such as Indiabulls Properties Private Limited, Indiabulls Real Estate Company Private Limited, Indiabulls Estate Limited&its subsidiaries and Indiabulls Infastructure Ltd.

One of the Indiabulls subsidy has acquired 11 acres of Jupiter Mills land in Lower Parel, Mumbai from NTC for Rs 276.6 crore and another acquired 7.8 acres of Elphinstone Mills land in an auction for Rs 441.75 crore and development projects at both the places are going on currently.

Indiabulls Estate Ltd and its subsidiaries which have already acquired over 115 acres in the Sonepat area of Haryana is in the process of acquiring some more land in the same area for development of township and a housing project.

Besides, Indiabulls Infrastructure Ltd through its wholly owned subsidiary owns 50 per cent shareholding in Kenneth Builders&Developers Pvt Ltd has acquired 35.8 acres of residential land located in South Delhi through auction offered in public-private partnership initiative for a consideration of Rs 450.01 crore, release said.

UNI SN PP AW2030