Mumbai: Shares of Indiabulls Real Estate Ltd surged over 100% in the last one month. The stock price started rallying after its board approved restructuring of its leasing and commercial operations into a separate entity.
The stock hit a high of Rs163.20, a level last seen on 12 November 2010, and gained as much as 11% in intraday trade. Since 29 March, it has gained over 103% and so far this year, it has surged 118.74%.
At 11am, the scrip was trading at Rs155.50 on the BSE, up 10% from its previous close, while India’s benchmark Sensex index rose 0.5% to 29,502.86 points. Other realty stocks too were trading higher. DLF Ltd rose 5%, HDIL Ltd 4%, Godrej Properties Ltd 2.7%, Oberoi Realty Ltd 2%, Prestige Estate 1.2% and Sobha Ltd 1%.
The scrip, however, pared some of the gains and closed up 6.48% at Rs152.05 on the BSE.
On 20 April, the company said its residential operations will continue to remain with Indiabulls Real Estate Ltd while leasing and commercial assets as well as future projects will be held by new entity Indiabulls Commercial Assets Ltd.
The commercial operation of the company has a net worth of Rs2,311 crore and a debt of Rs3,950 crore with potential revenue generation of Rs1,357 crore in 2020-21.
The board also decided to explore opportunities for bringing strategic investments into the new entity. It proposed to either get a strategic investor for its rental arm or demerge the rental arm from the development arm, Mint reported.
Earlier, CNBC TV reported that the National Stock Exchange and capital markets regulator Securities and Exchange Board of India are probing the trades in equity derivatives of Indiabulls Real Estate, following a sharp surge in its stock price in the last couple of trading sessions.