Shares of Indiabulls Real Estate rose as much as 13.41 per cent during Wednesday’s trading session before closing the day 10.23 per cent higher at Rs 116.35, after the company said it has decided to divest Century, the parent company that houses Hanover Square property, London, for £200 million. In its quarter-ended March investor presentation, Indiabulls Real Estate said it has decided to focus only on Mumbai and National Capital Region markets.
“In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish; so the promoter has undertaken to buy the parent company of London asset for £200 million,” it said.
The company had purchased the property for £161.5 million.
After this transaction, the net debt of the company would be below Rs 3,000 crore, it pointed out. As on March 31, the net debt of the company stood at Rs 4,590 crore. “Since it is a related party transaction, promoter will not be participating in the voting on this item,” the firm indicated in the presentation.
Indiabulls Real Estate posted a 95 per cent drop in its net profit at Rs 108.61 crore in the quarter-ended March compared to the same period last year. Total income decline 37 per cent to Rs 2,040.61 crore. —FE