Property developer Indiabulls Real Estate has reportedly raised $550 million (Rs.2, 585 crore) through an institutional share placement to overseas investors. According to reports, the company received subscription worth $2 billion from private equity and hedge fund investors including Farallon, TPG Capital, Och Zoff, Moon Capital and Fidelity. Morgan Stanley was the lead manager to the issue. An official announcement from the company on final allotment is awaited.
Earlier in the day, the company informed the stock exchanges that its board had closed the bid period and approved the issuance of up to 14,35,94,593 equity shares at a price of Rs.185 per share. Though the company did not disclose details about the end use of the proceeds, funds raised through the QIP route are expected to be utilized for funding its existing projects and acquiring new businesses. Domestic property developers are reeling under liquidity crisis as well as a slowdown in demand. New projects have been put on hold and many existing projects are facing delays. Following a revival of investor sentiment since March, realty players have started looking at different options to survive these tough times. Many companies in the sector have either raised funds through sale of assets or through the QIP route. Last month, Unitech raised $325 million (Rs1, 543.7 crore) through a qualified institutional placement in an attempt to part-retire its short-term debt and strengthen its balance sheet. On Tuesday, Unitech's board approved a proposal to raise funds through the issuance of securities and warrants to the promoters on a preferential basis. Reports suggest that the cash-starved firm also plans to raise around Rs.900 crore by selling off two of its hotels in Gurgaon and a commercial office complex in Saket, New Delhi by the end of the next month.
Meanwhile, DLF raised $783 million through a share sale last week. DLF is also planning to raise Rs.10, 000 crore in the next 2-3 months by selling off its land parcels, real estate projects and treasury investments.
On the Stock Exchanges, the benchmark for realty stocks, the Realty index jumped over 100% since March 9. In the past 2-3 sessions, realty stocks have considerably outperformed the broader market due to a change in sentiment.
Analysts believe that they will now be able to raise the much- needed funds for their survival, post the resounding victory of the UPA coalition. There is a talk of a further cut in interest rates. Expectations are running high on government spending in the infrastructure sector. The government is also expected to raise the foreign direct investment limits in the sector. Current FDI norms in real estate stipulate that foreign firms can invest only in projects that have a built-up area of 50,000 sq. mt or land of 25 acres.
On Wednesday, Indiabulls Estate was last trading at Rs.212.80, up 6.53% over the previous close. Parsvnath was up 9.45%, Sobha Developers was rising 8.62%, Ansal Infra was jumping 7.39% and Unitech was up 3.03%. However, DLF was trading down 7.49% on profit taking.
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May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.