Mumbai: The boards of Indiabulls Ventures and Indiabulls Real Estate on Friday approved the proposals of equity share buyback to the tune of Rs 1,000 crore and Rs 500 crore, respectively.
Capital markets company Indiabulls Ventures said in a filing that its board has approved buyback of upto 6.66 crore equity shares at Rs 150 per share.
"The board of directors of the company has approved a proposal of Rs 1,000 crore of buyback of upto 6,66,66,666 fully paid-up equity shares having face value Rs 2 each of the company, representing 12.61 per cent of its total existing fully paid-up equity capital (equity shares) at Rs 150 per equity share," it said.
Indiabulls Real Estate, on the other hand, would spend Rs 500 crore to buyback 5 crore shares with at Rs 100 per share.
"The board of directors of Indiabulls Real Estate Ltd has approved a proposal of Rs 500 crore of buyback of upto 5 crore fully paid-up equity shares having face value Rs 2 each of the company, representing approximately 11 per cent of its total existing paid-up equity capital (equity shares) at Rs 100 per equity share," the company said in its regulatory filing to the BSE.
The buybacks by both companies would take place through the 'tender offer' route and would be subject to shareholder approval.
Following the announcement, shares of Indiabulls Real Estate on the BSE hit the 5 per cent upper circuit and were locked at Rs 43.40, up Rs 2.05, or 4.96 per cent, per share.