Indiabulls Real Estate restructures to create value: Angel Broking

Views of Mr. Abhishek Lodhiya (Sr. Equity Research Analyst - Infrastructure, Capital goods and Real Estate, Angel Broking):

"Indiabulls Real Estate has announced plans to hive off its commercial real estate business into a separate venture, Indiabulls Commercial Assets Ltd (ICAL). The residential business will continue to operate under Indiabulls Real Estate. The eventual plan is to create a separate entity for the commercial and leasing business and target listing the stock at a later date. Indiabulls will also be looking at getting a foreign investor / PE Fund to participate in the equity of ICAL.

In the recent past, there have been some marquee deals in this space. Government Investment Corporation (GIC) of Singapore recently took a stake in the commercial real estate business of DLF while Blackstone had bought into K Raheja Corp. Most large global investors have preferred to participate in the commercial / leasing market in India as the retail space has been going through a very sluggish phase with tepid demand. Markets are expecting value discovery for Indiabulls Real Estate through this move as was evident from the stock rallying by over 30% during the day."

Shares of INDIABULLS REAL ESTATE LTD. was last trading in BSE at Rs.148.15 as compared to the previous close of Rs. 105.85. The total number of shares traded during the day was 23218110 in over 103796 trades.

The stock hit an intraday high of Rs. 150.9 and intraday low of 103.65. The net turnover during the day was Rs. 3017791024.

Source : Equity Bulls

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