Indiabulls Extend The Closing Date Of The Issue By One Day

Laxmi Mittal-backed Indiabulls Real Estate managed to raise $259 million on the Singapore Stock Exchange, a day after the scheduled closing of its REIT’s issue, Indiabulls Properties Investment Trust.

India’s fourth largest real estate developer sold 353 million shares at $1 per unit, out of which Lakshmi Mittal had committed 91 million shares.

The sale was to realize $278 million. The issue, which was to close on June 5, 2008, was delayed by a day on account of it being under subscribed.

If market experts are to be believed, weak sentiment across the global real estate market led to under subscription of the retail portion. A minimum of 1,000 investors need to subscribe to successfully close an issue.

The issue was subscribed by only 700 investors on June 5. Following this, the company decided to extend the closing date of the issue. However, when contacted, Gagan Banga, the group spokesperson for Indiabulls, said a delay in getting regulatory approval forced Indiabulls to extend subscription process for retail investors by a day.