Indiabulls Ventures tumbles over 7% in an otherwise strong market

Shares of Indiabulls Ventures dipped as much as 7.8 per cent to Rs 198 on the NSE in an otherwise firm market on Monday. The stock was among the top gainers at the bourses last week during which it had risen 19.28 per cent as compared to Nifty50's 2.42 per cent gain in the same period.

At 9:54, the stock had pared some losses and was trading 3.68 per cent lower at Rs 207 as compared to 0.97 per cent gain in the Nifty50 index. Around 10.92 lakh shares have changed hands on the NSE and BSE combined so far.

On Friday, In an exchange filing post market hours, Indiabulls Ventures Ltd said it will raise Rs 588 crore by issuing preferential shares to certain foreign investors.

The decision was taken by the board of directors in a meeting held today (August 28, 2020).The board approved the preferential offer and issue of an aggregate of up to 3,36,00,000 equity shares, approximately 5.5 per cent of the post preferential issue share capital of the company, at an issue price of Rs 175 per equity share, for cash consideration, to certain foreign investors, it said.

"The total equity investment by the investors would aggregate to Rs 588 crore, equivalent to $80 million in the company," Indiabulls Ventures said.

A total of six investors will infuse the equity capital into the company, with Ribbit Cayman IN Holdings VI, Ltd (RCH) being offered 1,05,00,000 shares, while 84,00,000 shares extended to NWI Emerging Market Fixed Income Master Fund Ltd.

Inteligo Bank Ltd and First Royalty Ventures LLC will be getting 42,00,000 equity shares each. TIMF Holdings will be offered 37,80,000 shares and Think India Opportunities Master Fund LP will get 25,20,000 shares of the company.

The board of directors, among others, approved the appointment of Sameer Gehlaut as Chairman and Chief Executive Officer (CEO) of the company. The company also approved the re-designation of Divyesh B Shah as the Chief Operating Officer of the company.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel