MUMBAI: Realty developer Indiabulls Real Estate has approved the proposal to buy-back up to 2.6 crore equity shares of the company aggregating up to Rs 624 crore.
The maximum size of the buy-back is around 5.45% of existing paid-up share capital of the company, the developer said in a regulatory filing.The maximum offer price for the proposed buy back will be prevailing market price on stock exchanges subject to a price not exceeding Rs 240 per equity share.
The aggregate value of the buy-back is less than 10% of total paid-up share capital and free reserves of the company.The proposed buy-back will make the balance sheet of the company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity, the company said.On Friday, shares of Indiabulls Real Estate closed at Rs 205.70, down 2.67% over previous close,The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the buyback regulations.