News: Indiabulls gets nod for demerger of its real estate biz

(PTI 08/08/2006) Mumbai - Indiabulls Financial Services Ltd has received Bombay Stock Exchange and National Stock Exchange nod for demerger of its real estate business. The company on Tuesday said the NSE and BSE has approved its scheme of rearrangement, whereby Indiabulls Real Estate Ltd would be a separately traded public entity. Last year, Indiabulls had acquired Jupiter Mills and Elphinstone Mills, located at prime areas in Mumbai, from NTC for building commercial office space. "Every shareholder holding one share of Indiabulls Financial Services Ltd would get one share of Indiabulls Real Estate Ltd, the demerged entity," the company said in a release here. Farallon Capital Management LLC, recently invested Rs 644 crore in the company under a share subscription agreement. As per the agreement, Oberon Limited, a Farallon SPV will be allotted convertible preference and non-convertible preference shares against the deal. Indiabulls, which had committed to complete the de-merger by the third quarter, has also applied to the Delhi High Court for its approval, the release said.