UK NRI Mittal and US Farallon
Capital, bought 28.6% stake in Indiabulls for Rs 1,580 crore
Mumbai, Feb. 14, 2008
NRI Mittal, steel tycoon
and US-based, Farallon Capital,
jointly bought 28.6% in unlisted Indiabulls Power Services for
Rs 1,580 crore and value will go up 5,525 crore.
Mittal will invest Rs 592.5 crore for 10.7%
stake in the company. Farallon Capital is investing Rs 987.5 crore
to buy 17.9% in the company and already has stakes
in other Indiabulls companies.
Indiabulls Real Estate had invested Rs 592.5 crore in its power
business as equity capital. At present, Indiabulls Power is in
the process of building two mega thermal power plants in Maharashtra
with an aggregate capacity of nearly 4,000mw. It has also agreed
to build for four medium sized hydro-power projects in Arunachal
Indiabulls is India’s leading Financial Services and Real
Estate company having over 640 branches all over India. Indiabulls
serves the financial needs of more than 4,50,000 customers with
its wide range of financial services and products from securities,
derivatives trading, depositary services, research & advisory
services, consumer secured & unsecured credit, loan against
shares and mortgage & housing finance. With around 4000 Relationship
Managers, Indiabulls helps its clients to satisfy their customized
financial goals. Indiabulls through its group companies has entered
Indian Real Estate business in 2005. It is currently evaluating
several large-scale projects worth several hundred million dollars.
Indiabulls Financial Services Ltd is listed on the National Stock
Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange.
The market capitalization of Indiabulls is around USD 3,330 million
(30th September 2007). Consolidated net worth of the group is
around USD 950 million (30th September 2007). Indiabulls and its
group companies have attracted more than USD 800 million of equity
capital in Foreign Direct Investment (FDI) since March 2000. Some
of the large shareholders of Indiabulls are the largest financial
institutions of the world such as Fidelity Funds, Goldman Sachs,
Merrill Lynch, Morgan Stanley and Farallon Capital.
Business of the company has grown in leaps and bounds since its
inception. Revenue of the company grew at a CAGR of 159% from
FY03 to FY07. During the same period, profits of the company grew
at a CAGR of 184%.
Indiabulls became the first company to bring FDI in Indian Real
Estate through a JV with Farallon Capital Management LLC, a respected
US based investment firm. Indiabulls has demonstrated deep understanding
and commitment to Indian Real Estate market by winning competitive
bids for landmark properties in Mumbai and Delhi.