Indiabulls to de-merge its real estate business

Indiabulls Financial Services (IBFSL) has announced its decision to spin-off its real-estate subsidiary.

The new unit would be known as Indiabulls Real Estate. The official company release said that the shareholders of IBFSL would be issued shares of Indiabulls Real Estate in the ratio of 1:1 i.e. for each IBFSL equity share of a face value of Rs 2; shareholders will be allotted one equity share of Indiabulls Real Estate also of face value Rs 2.

Indiabulls executive director Gagan Banga said in a statement on this development: “Both businesses had a very different capital structure. Also, we felt that de-merging the real estate business will unlock value for our shareholders.”

He added: “The scheme proposes to de-merge assets and liabilities of the real estate undertakings of Indiabulls Financial Services Ltd (IBFSL) into Indiabulls Real Estate. The appointed date for the de-merger of the real estate undertaking is May 1.”