Indiabulls Real Estate stock hits seven-year high on restructuring plan

The Indiabulls Real Estate stock rose up to 40 percent today after its board considered the restructuring of business via demerger.

At 15:02 hours, the stock was trading 39.16 percent higher at Rs 147.30 level on the BSE.

It closed 39.96 percent or 42.30 points higher at Rs 148.15 on BSE.

In a filing to the BSE, the firm said its board today considered the possibility of streamlining its existing 'residential', 'commercial' and 'leasing' businesses by segregating 'commercial and leasing' business carried on by itself and/or through its SPVs and vesting the same into 'Indiabulls Commercial Assets Ltd' (ICAL) and restructuring/reorganizing its businesses by either (i) restructuring by way of placing ICAL as a separate holding co under the Company to hold its assets and investments relating to 'commercial and leasing' business segment and to undertake the business & operations of 'commercial and leasing' business segment and/or explore opportunities to bring in strategic investments; or (ii) by reorganizing its existing businesses by way of a demerger of the undertakings, business, activities and operations pertaining to its commercial and leasing business segments.

The stock which opened at 108 level, hit a 52-week high of Rs 150.90 on the BSE. About 23.22 million shares of the firm were traded on the BSE. The stock is up 108.08 percent on an year-to-date basis.