Stock Under Rs 30: Real Estate Company Approves Rs 1,000 Crore Fund Raise Through Preferential Warrant Issue

On Thursday, Indian equity benchmarks traded marginally lower, with the benchmark Nifty 50 index declining 0.07 per cent to 23,389.05. Amid the subdued market sentiment, Indiabulls share price traded at Rs 24.26, down 0.29 per cent from the previous close. The stock remained in focus after the company approved a preferential issue of convertible warrants to raise up to Rs 1,000.07 crore.

Indiabulls Board Approves Rs 1,000 Crore Fund Raise

Indiabulls Ltd informed the stock exchanges that its Board of Directors has approved the issuance of up to 51.55 crore convertible warrants on a preferential basis.

The warrants will be issued at a price of Rs 19.40 per warrant, including a premium of Rs 17.40 per equity share, aggregating to a total fundraising of approximately Rs 1,000.07 crore. Each warrant will be convertible into one fully paid-up equity share of the company and may be exercised in one or more tranches within 18 months from the date of allotment.

Indiabulls Promoter Group To Participate

The proposed preferential allotment includes participation from promoter group entities as well as non-promoter institutional investors.

Among promoter group entities, Phanes Limited will be allotted 22.52 crore warrants, while Hermes Limited will receive 14.02 crore warrants.

The participation of promoter group entities accounts for a significant portion of the proposed issuance, indicating continued promoter backing for the company.

Institutional Investors Also Join The Issue

The company has also approved allotments to institutional investors under the preferential issue. EBISU Global Opportunities Fund Limited will be allotted 10 crore warrants, while Nyaasa Global Fund VCC – Nyaasa India EM Sub Fund will receive 5 crore warrants. Upon full conversion of the warrants, these investors will collectively hold 51.55 crore equity shares arising from the exercise of the warrants.

Indiabulls Shareholder Approval Scheduled

The preferential issue is subject to shareholder approval and other regulatory clearances.

To seek shareholder consent, the Board has approved convening an Extraordinary General Meeting (EGM) on July 2, 2026. The meeting will be conducted through video conferencing or other audio-visual means. The company stated that the issuance will be carried out in accordance with the provisions of the Companies Act, 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Indiabulls Capital Base To Strengthen

The proposed fundraising is expected to strengthen the company's equity capital base and provide additional financial flexibility. The issuance will be undertaken through a private placement route to select promoter and non-promoter investors.

About Indiabulls

Indiabulls Ltd is engaged in diversified business activities and is part of the Indiabulls Group. The company has interests across multiple sectors through its subsidiaries and investments. The company is listed on the stock exchanges and continues to pursue capital allocation and growth initiatives through strategic fundraising and business expansion opportunities.

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Disclaimer: The article is for informational purposes only and not investment advice.