IBFSL gets NSE, BSE nod for scheme of de-merger

New Delhi, Aug 7 (UNI) Indiabulls Financial Services (IBFSL) today received regulatory approval from the NSE and BSE stock exchanges for restructuring and re-organising the company's businesses through a de-merger.

The company has also applied to the Delhi High Court for approval.

Upon de-merger of the real estate business, Indiabulls Real Estate Ltd would be a separately trading public entity, wherein every shareholder, holding one share of Indiabulls Financial Services Ltd, would get one share of Indiabulls Real Estate Ltd the demerged entity, a company statement said.

Knight Frank and Associates carried out a valuation of Jupiter Mills and Elphinstone Mills that the company acquired last year from NTC for building commercial office space.

Knight Frank&Associates has valued Indiabulls equity ownership in Jupiter and Elphinstone Mills SPVs to be worth Rs 2,642 crore upon completion of the buildings in January 2008; equivalent to Rs 163 per basic share of Indiabulls Financial Services Ltd. Indiabulls proportionate share of stabilised net rentals receipts in Jupiter and Elphinstone Mills SPVs is estimated to be Rs 359 crore per year in calendar year 2009, equal to Rs 22.0 in net rentals receipts per basic share of Indiabulls Financial Services Ltd.

The company recently completed a share subscription agreement with Oberon Ltd, a special purpose vehicle wholly owned by funds managed and controlled by Farallon Capital Management LLC.

Under the terms of the agreement, Oberon will be allotted convertible preference and non-convertible preference shares for a total consideration of Rs 644 crore.

The convertible preference shares are convertible at a price of Rs 300, into 1.15 crore shares of Indiabulls Financial Services and bear a dividend of 5 per cent, for a total consideration of Rs 345 crore.

The conversion price of Rs 300 for the convertible preference shares is at a significant premium to the closing price of Rs 257 of Indiabulls shares on the stock exchanges in the last trading session of Friday.

The non-convertible preference shares will be allotted for a total consideration of Rs 299 crore and carry a dividend of 5 per cent per year for the first eighteen months and then 10 per cent per year for the next eighteen months.

Indiabulls Financial Services Ltd is one of India's leading financial services companies, and declared a net profit of Rs 253.5 crore for the last financial year ending March 2006. The company has a consolidated net-worth of Rs 1,703 crore as on 31 March, 2006.

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