High Court approves Indiabulls demerger

Mumbai, Dec 6 (UNI) Indiabulls Financial Services Ltd today received the order from Delhi High Court approving the demerger of real estate business of the company to Indiabulls Real Estate Ltd.

The High Court order noted that ''Upon the scheme of demerger being sanctioned, each shareholder of the transferor company will be entitled to one share in the demerged company,'' a release issued here today said.

The order added ''Upon this scheme becoming effective and after the allotment of new equity shares by the Resulting Company, the issued, subscribed and paid up capital of the Resulting Company shall stand increased to Rs 339.97 crore comprising of Rs 33.73 crore divided into 16,86,75,378 equity shares of Rs two each fully paid up. Rs 296.24 crore divided into 1,15,00,000 Resulting Company Convertible Preference Shares of Rs 138 each fully paid up and 99,66,667 Resulting Company Non Convertible Preference Shares of Rs 138 each fully paid up.'' Consequently, Indiabulls Real Estate Ltd would hold the various real estate companies of Indiabulls as its majority owned subsidiaries.The share ownership of Indiabulls Financial Services in its real estate companies would be demerged to Indiabulls Real Estate Ltd.

One of the subsidiaries whose ownership is being demerged to the real estate company is Indiabulls Infrastructure Development Ltd where L N Mittal and Farallon recently bought 13.3 per cent stake for Rs 447 crore.

The demerger is expected to be completed during the current fiscal and will result in the Company's equity shareholders owning one equity share of Indiabulls Financial Services, comprising of the financial services business, and one equity share of Indiabulls Real Estate Ltd - comprising of the real estate and construction development related business - for each share of the Company they currently own.

The demerger paves way for Indiabulls Real Estate Ltd to emerge as one of the largest listed real estate companies, whose development activities are focused on tier one cities and has a significant position in Mumbai where it is developing 19 acres of mill lands that it had bought in NTC auction last year for Rs 718 crore.

The company is also developing 36 acres of land in South Delhi that it had bought in DDA auction for Rs 451 crore in partnership with DLF.

UNI SN MJ SKB1949