Indiabulls Real Estate on Monday informed the bourses that its Board of Directors has considered the possibility of restructuring its existing ‘residential’, ‘commercial’ and ‘leasing’ businesses into separate businesses to bring in greater focus.
The company in a press release said,”The Board of Directors of the Company at its meeting held today, i.e. 17th April, 2017, inter alia, considered the possibility of streamlining the existing ‘residential’, ‘commercial’ and ‘leasing’ businesses of the Company by segregating the ‘commercial and leasing’ business segment carried on by itself and/or through its SPVs and vesting the same into ‘Indiabulls Commercial Assets Limited’ and restructuring/reorganising the businesses of the company either (i)restructuring the businesses by way of placing ‘Indiabulls Commerical Assets Limited’ as a separate holding company under the Company to hold the assets and investments relating to the ‘commercial and leasing’ business segment of the Company and/or explore opportunities to bring in strategic investments or (ii) by reorganising the existing businesses by way of a demerger of the Company, on a going concern basis, of the undertakings, business , activities and operations and pertaining to its commercial and leasing business segment. The object of the same is, to, inter alia, bring greater focus on each of the said business segments of the company.”
Reacting to the restructuring news, shares of Indiabulls Real Estate Ltd were trading 13.65 per cent up at Rs 120.30 at 11.09 am. BSE Sensex was trading 18.42 points up at 29,479.87 during the same time.
The company further added that its board has constituted a restructuring committee, comprising some of its directors and officers to consider, examine and evaluate the feasibility of and options to implement the aforementioned restructuring or reorganisation of the business of the company.