Dec 1, 2006

Mittal buys 3.33 pc stake in Indiabulls

Steel king Lakshmi Niwas Mittal has bought 3.33% in Indiabulls Infrastructure Development for Rs 111.75 crore in a move that gives him a foothold in the country’s fast-growing real estate and infrastructure sector.
US-based hedge fund Farallon Capital has also bought a 10% stake in the company for Rs 335.25 crore. The total transaction is worth Rs 447 crore and values Indiabulls Infrastructure, which is setting up a special economic zone spread over 6,000 acres in Maharashtra, at Rs 3,350 crore.

Indiabulls Infrastructure was a 100% subsidiary of Indiabulls Financial Services before the transaction. Its stake in the company will now drop to 86.7%.

This is Mr Mittal’s third investment in an Indiabulls company. In 2000, he had bought 61.3 lakh shares or 7.52% in Indiabulls Financial Services at an average price of Rs 6 per share. Earlier this year, he again purchased 8.4% for Rs 100 crore in Indiabulls Credit Services, an unlisted company that gives consumer loans.

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