Indiabulls Real Estate said its board has approved raising Rs 3,911 crore through the issuance of shares and warrants to investors, including the Blackstone Group and Embassy Group.
Global investment firm Blackstone will invest Rs 1,235 crore, while the Bengaluru-based Embassy Group will infuse Rs 1,160 crore. After the conversion of the warrants, the Embassy Group will hold 18.7 per cent while Blackstone will own 12.4 per cent.
In a regulatory filing on Friday, IBREL (Indiabulls Real Estate Ltd.) informed that the board has approved “fund-raise via preferential issue of equity shares and convertible warrants, on a private placement basis, for cash consideration, aggregating to approx. Rs 3,910.93 crore”.
The move is aimed at recapitalising its balance sheet and positioning the company for organic and inorganic growth purposes.
These include capital expenditure for the completion of existing projects and new launches as well as proposed acquisitions, other working capital requirements and general corporate purposes.
The board has approved the issuance of 9,13,55,606 fully-paid equity shares of a face value Rs 2 each of the company at Rs 111.51.
It has also approved the issuance of 25,93,69,201 warrants, convertible into an equivalent number of equity shares, at an exercise price of Rs 111.51.
These securities would be issued to certain entities of the Embassy Group, Baillie Gifford, entities controlled by funds managed by affiliates of Blackstone Inc. (Blackstone Real Estate Fund), funds managed by Quant Money Managers, Poonawalla Finance and other investors.
The board’s nod is subject to the approval of the shareholders of the company and other requisite clearances.
In the filing, IBREL has said the board has approved asset acquisitions worth Rs 1,853 crore to re-energise the business and fuel growth.
Sachin Shah, executive director, IBREL, said, “We are excited to announce the recapitalisation of the company, which also includes four strategic asset acquisitions that boost our project pipeline.
“We are grateful for the constant support of our two largest shareholders. We are thrilled that we have a roster of new blue-chip investors who have come on board and validated the company and its growth prospects. The funds will allow us to complete our existing projects and pursue new opportunities. This investment is a culmination of the turnaround strategy that has taken place over the past 13 months.”
“It can fit well in some areas as agro-climatic conditions are the same,” he said. The situation of wheat farmers in Pakistan is different despite sharing similar agro-climatic conditions for growing wheat.
Since 2021, Pakistan’s agriculture department has released as many as 31 wheat varieties through international collaborations to help cultivated fields become more productive, climate-resilient and disease-resistant.
While Pakistan Agriculture Research Council (PARC) has acquired over 4,000 wheat germplasm varieties from various international sources for evaluation and utilization in national breeding programmes, it has yet to indigenously produce quality seeds and species with the ability to absorb climate shocks.
Ejaz Rao, a progressive farmer from Bahawalpur, said, “Pakistan’s agriculture authorities have failed to improve seed quality for over 20 years. The hybrid seeds from countries with different climate present dual challenge i.E. Non-compatible with local agro-climatic conditions and disease-carriers.
“During late 20th century, a hybrid seed from US carried a pest, locally named as “AmrikanSundi”, which could not be eradicated,” Rao said.
Stating that climate change has necessitated changes in sowing and harvesting seasons, he suggested adapting to new realities. “The availability of seeds, inputs, fertilizer and water must be ensured on time to ward off la niña and elniño effects.”
Dr Zahir A Zahir, Professor of Institute of Soil & Environmental Sciences, University of Agriculture, Faisalabad, said the University in collaboration with Washington State has developed and acclimatized germplasm, a hybrid seed variety, which requires less water and gives more yield.
“Pakistan has turned from net exporter of wheat to net importer of wheat in a short period of just five years, thanks to the formidable twin challenge of climate change and population explosion affecting in tandem,” says Mushtaq Ahmad Gill, Chief Executive, South Asian Conservation Agriculture Network (SACAN).
Highlighting the importance of water amidst raging global warming, Gill who is also former Director General of Water Management, Punjab, Pakistan said Pakistan sadly only has water storage capacity for 30 days.
“Half of the year, we face drought, the other half, floods,” Gill said and called for increasing water storage and saving precious water worth billions of dollars from going into the sea every year.
“We, the agricultural scientists and farmers from India and Pakistan, regularly stay in touch with each other and hold online/Youtube sessions to benefit from each other’s experiences. We exchange technology, expertise and products to help each other get optimum yields,” Gill said, while stressing on the need to maintain regular contacts.
Punjab’s Minister for Agriculture Syed Ashiq Hussain Shah ruled out any climate impact on wheat crop. “We are expecting a bumper crop this year.”
