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IndiaBulls Real Estate share closes 4.96% higher after firm announces Rs 500-crore share buyback

The buyback price is more than double today's closing price of Rs 43.40 on BSE. The stock has lost 52.75% during last one year and 50.23% since the beginning of this year.

twitter-logo BusinessToday.In        Last Updated: October 11, 2019  | 18:01 IST
IndiaBulls Real Estate share closes 4.96% higher after firm announces Rs 500-crore share buyback

IndiaBulls Real Estate share price closed 4.96% higher today after the firm announced a share buyback of up to 5 crore shares at Rs 100 each which would cost the company Rs 500 crore.

The buyback price is more than double today's closing price of Rs 43.40 on BSE. The stock has lost 52.75% during last one year and 50.23% since the beginning of this year.

IndiaBulls Real Estate said that its board of directors on Friday "approved a proposal of Rs 500 crore of buyback of up to 5 crore fully paid-up equity shares representing approximately 11 per cent of its total existing paid-up equity capital at Rs 100 per share".

The buyback is proposed to be made from all eligible existing holders / beneficial owners of the equity shares (including persons who become shareholders by cancelling Global Depository Receipts and receiving underlying Equity Shares), on a proportionate basis, as on the record date, to be decided at a later date, the firm said.

The board has constituted a buyback committee and delegated powers to it to oversee and implement the buyback of shares.

The small cap stock was locked in upper circuit of 5% yesterday after the realty firm said it would hold a meeting of the board of directors of the company to consider buyback of shares on October 11, 2019.

The development comes amid a flurry of negative news for the parent of real estate firm. Indiabulls Group is facing charges of alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

A plea has been filed in the Delhi High Court seeking an SIT investigation into the financials of IBHL. The plea alleged that IBHFL, through its promoters and their various group firms and subsidiaries has been advancing dubious loans to companies owned by large corporate groups.

They, in turn, have been routing the money back into the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth, it alleged.

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