Indiabulls Real Estate shares jump 23% on planned fund infusion by promoter

Indiabulls Real Estate stock emerged as the top-performing scrip in the BSE small-cap space, surging nearly 17 percent boosted by reports the company’s promoter Sameer Gehlaut will be hiking his stake by 10 percent to 37 percent by infusing capital worth Rs 538 crore. At 1.10 pm, Indiabulls Real Estate stock was quoted at Rs 51.75, up 23 percent from the previous close. Over 42 lakh shares changed hands on the BSE as against two-week average volume of around 9 lakh shares. [caption id=“attachment_2306100” align=“alignleft” width=“380”] Reuters[/caption] From its 1-year low of Rs 41 touched last week, the stock has appreciated 26 percent in two sessions so far. However, the stock has been a major laggard in the current month, tanking nearly 29 percent during the period, primarily due to weak broad market sentiment and also due to worsening fundamentals of the sector as a whole, which is marred by higher inventory levels and ballooning debt. According to media reports, the proposed fund infusion by promoter will be through a mix of equity shares and convertible warrants at Rs 67 per share, a premium of nearly 29 percent over its current market price. The capital will be utilised to prop up business prospects and also to reduce its debt by 20 percent, the report said.