Indiabulls Real Estate plans revamp

“(The company is considering) segregating and streamlining the power and infrastructure businesses…,” it said in a filing to the Bombay Stock Exchange.

Indiabulls Real Estate holds over 58 per cent stake in Indiabulls Power Ltd,which is also listed on the BSE.

The filing noted that one of the objectives of the restructuring plan is to increase net worth of infrastructure and power business,which would help in meeting the project funding requirements.

According to sources,the company plans to restructure its majority shareholding in Indiabulls Power,by transferring the same to a group firm.

The company may also consider divesting the majority stake,sources said.

A company spokesperson did not offer any immediate comments on the proposal.

According to the realty firm,the restructuring would help itself and the subsidiaries to allocate the required capital for development projects,unlock value for the shareholders and streamline ownership structure of the company and its subsidiaries,among others.

“(The restructuring) would aim to segregate the power/infrastructure business of the company from its other businesses,thereby allowing investors to diversify their portfolio into separate entities,focused on the distinct businesses of real estate and power/infrastructure,respectively,” the filing said.

A restructuring committee has been formed to evaluate the possibilities of business reorganisation.

The company would also be consulting the board of Indiabulls Power on restructuring plans.