Demerger of Indiabulls Real Estates holding in Indiabulls Power.14 Apr 2011
In line with our objective to unlock shareholders’ value, Board of Directors of Indiabulls Real Estate Ltd (IBREL) have given their go ahead to the proposal to hive off its power and infrastructure business into a separate holding company called Indiabulls Infrastructure and Power Ltd (“IIPL”). As per the scheme, Power Business of Indiabulls Real Estate along with its 58.6% of the equity shareholding of Indiabulls Power, will vest with Indiabulls Infrastructure & Power on a going concern basis. After the proposed scheme gets the requisite approval from the shareholders and Hon’ble High Court of Delhi, each shareholder of Indiabulls Real Estate will get 2.95 equity shares of Indiabulls Infrastructure & Power for every share of Indiabulls Real Estate held by them. The scheme basically aims at crystallizing the valuation of Indiabulls Real Estate’s Power Business in the hands of its ultimate beneficial owners, i.e. Indiabulls Real Estate’s shareholders. The restructuring shall be implemented in terms of a composite scheme of arrangement under the provisions of Sections 391-394 of the Companies Act, 1956.