Indiabulls Real Estate to buyback up to 6 crore shares for Rs 540 crore

New Delhi: Indiabulls Real Estate on Thursday announced buy-back of up to six crore equity shares of the company for Rs 540 crore.

In a BSE filing Indiabulls Real Estate informed that the board approved the proposal of buy-back of up to 6 crore fully paid-up equity shares of Rs 2 each of the company, about ll.8 per cent of existing paid-up share capital of the company.

The company has fixed the price not exceeding Rs 90 per equity share, which represents a premium of about 30 per cent to the yesterday's closing price of BSE and NSE, aggregating up to an amount not exceeding Rs 540 crore.

"The proposed buy-back will make the balance sheet of the company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity," the Mumbai-based developer said.

Promoters had 47.55 per cent stake in the company as on September 30, 2016. The company's market cap stood at Rs 3,376.92 crore at today's closing price of Rs 66.65 apiece on BSE, down 3.48 per cent.

Indiabulls is developing more than 10 projects with a total saleable area of 30.51 million sq ft. It has presence in key metros of Mumbai, NCR and Chennai.

The company had entered London property market through acquisition of 22, Hanover Square in Mayfair, Central London, a 87,444 sq ft commercial property in July 2014.