The Hindu : Business : Indiabulls to demerge real estate division

Online edition of India's National Newspaper
Tuesday, May 02, 2006

Business

Business

Indiabulls to demerge real estate division

NEW DELHI: Indiabulls Financial Services Ltd. (IBFSL) on Monday decided to demerge its real estate division, which would get the two NTC mills' land purchased by the parent company in Mumbai.

Shareholders of IBFSL will get one share against each share of face value of Rs. 2 in the new company, to be called Indiabulls Real Estate Ltd, according to a decision taken by the company's board of directors.

The scheme of demerger is subject to nod from shareholders, stock exchanges and the Delhi High Court.

The new company, which is proposed to be demerged with effect from Monday, would include de-merged assets and liabilities of the real estate undertakings of IBFSL like Indiabulls Properties Pvt. Ltd., Indiabulls Real Estate Company Ltd., Indiabulls Estate Ltd., Indiabulls Infrastructure Ltd. and Indiabulls Resources Ltd.

Unlocking value

The company said in a statement here that the move would unlock tremendous value for all shareholders as they could participate directly in both financial services and real estate businesses.

Indiabulls Properties had recently purchased two pieces of NTC land of 11 acre and 7.8 acre in Mumbai for Rs. 276.60 crore and Rs. 441.75 crore, respectively.

Indiabulls Estate and its subsidiaries are in the process of acquiring land for setting up a township and housing project in Sonepat, Haryana. The company has already acquired over 115 acres of land in that area. — PTI

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