Indiabulls Real Estate - Updates
Indiabulls Real Estate Ltd has informed BSE that the Company on February 14, 2008, has entered into an agreement with FIM Ltd (an FVCI managed by Farallon Capital Management LLC and its affiliates) and LNM India Internet Ventures Ltd (an investment entity on behalf of Mr. L N Mittal and family) (the ?Investors?) in terms of which the Investors have agreed to invest an aggregate of Rs 15,800,000,000 through subscription to equity shares at Rs 66.67 per share in Sophia Power Company Ltd, an unlisted company which is a 100% subsidiary of the Company engaged in the power sector, for an aggregate of 37.5% of its post issue equity share capital. Of this amount, FIM Ltd has agreed to invest Rs. 9,875,000,000 for a 23.4% post issue stake and LNM India Internet Ventures Ltd has agreed to invest Rs. 5,925,000,000 for a 14.1% post issue stake in Sophia Power Company Ltd.
The Company has invested an amount of Rs. 3,950,000,000 at a price of Rs. 10/- per equity share of face value Rs. 10/-, and will hold 62.5% of the post issue equity share capital of Sophia Power Company Ltd. The Company has also invested Rs. 1,975,000,000/- for subscription to equity shares of Indiabulls Power Services Ltd, another unlisted company which is a 100% subsidiary of the Company engaged in the power sector.
It may further be noted that the Company and the Investors are contemplating merger of Indiabulls Power Services Ltd into Sophia Power Company Ltd, in accordance with applicable laws. Subject to approval of the Board of Directors of both companies and sanction of the appropriate High Courts, upon approval of the merger share exchange ratio as currently contemplated and sanction of the merger, it is anticipated that the Company will hold 71.4% of Sophia Power Company Ltd which is the merged entity, with the balance 17.9% held by FIM Ltd and 10.7% held by LNM India Internet Ventures Ltd.
Tags: Indiabulls Real Estate