Indiabulls raises capital

Indiabulls is the fourth largest competitor in the Indian property market. They had been looking for a way to raise capital for further projects.

They have recently gone through on a plan that raised INR 15.8 billion for them to use. The plan involves a sell-off of shares in their subsidiary company Sophia Power Company Limited. 

As one of the largest companies operating in the Indian property market today, Indiabulls has been very busy raising investment money. Their announced target is a goal of approximately one billion dollars. Their primary means of acquiring this substantial amount of investment money is through the issue of bonds, or some form of a hybrid instrument. When issued, the hybrid instrument would have included debentures and equity from the company's flagship division Indiabulls Financial Services.

This latest push for funds comes after a successful fundraising rally which saw the company gaining approximately 400 million dollars through the use of an equity placement in partnership with the company Lakshmi Mittal with its power arm division last week. Lakshmi Mittal also incorporated a listing of one of their Singapore property investment trust to help raise a total of nearly 1.2 billion dollars on its own.

Indiabulls' issuance of one billion dollars worth of bonds and other securities is planned to occur very soon, and could lead to the company turning to an initial public offering. If they did decide to go public with an IPO, they would most likely do so through the groups' power arm, Indiabulls Power Services, Ltd. The IPO would probably happen this coming year, and there is a good chance it could occur within the next six months.

In an effort to increase the value to shareholders, the company has decided to separate their broker business division named Indiabulls Securities and spin them off into a completely different entity that would list separately on the bourses in the near future. A senior Indiabulls Financial Service source stated, "We had previously thought of raising funds from overseas markets by offering international securities such as ADRs and GDRs, but for now we will raise about one billion dollars from the domestic market itself by issuing bonds convertible into equities or a hybrid instrument that would be a mix of equity and convertible bonds."