IndiaBulls Real Estate stock locked in upper circuit of 5% as board to consider buyback of shares

IndiaBulls Real Estate share price was locked in the upper circuit of 5% today after the realty firm said it would hold a meeting of the board of directors of the company to consider buyback of shares on October 11, 2019.  IndiaBulls Real Estate share price opened 5% higher at 43.10 compared to the previous close of Rs 41.05 on BSE.

The small cap stock has risen 7.75% in last two sessions.  There were only buyers, no sellers in the stock.

The stock has lost 51% during last one year and 50% since the beginning of this year.

"We wish to inform that a meeting of the Board of Directors of the Company will be held on Friday, October 11, 2019, to consider, inter alia, the proposal of buyback of equity shares of the company," IndiaBulls Real Estate said on Tuesday.  

The development comes amid a flurry of negative news for the parent of real estate firm.

Indiabulls Group is facing charges of alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

A plea has been filed in the Delhi High Court seeking an SIT investigation into the financials of IBHL. The plea alleged that IBHFL, through its promoters and their various group firms and subsidiaries has been advancing dubious loans to companies owned by large corporate groups.

They, in turn, have been routing the money back into the accounts of companies owned by the promoters of Indiabulls, so as to increase their personal wealth, it alleged.