Investors chase Indiabulls Financial

Indiabulls Financial Services surged 5% to Rs 673 on continued buying, a day ahead of the last trading date for shareholder eligibility to get the shares of the real estate firm.

The stock rose on high early volume of 18.2 lakh shares.

The stock had spurted 9.4% to Rs 590.30 on 21 December on high volume of 56.9 lakh shares on BSE after the company announced 9 January 2007 as record date for its demerged real estate business, now brought under Indiabulls Real Estate (IREL). Continued buying in the stock took the scrip up further to Rs 640.75 by 27 December.

The stock enters no-delivery period on BSE from 2 January 2007 to 8 January 2007, for the purpose of the demerger of the real estate business.

Earlier, the stock moved in the range of a low of Rs 500 and a high of Rs 582 since mid-November 2006. Last few months saw a solid surge in the scrip. From Rs 197.95 on 24 July, the stock surged to Rs 640.75 by 27 December.

International consultancy firm Knight Frank has estimated the value of Indiabulls' real estate projects, including the development potential, at Rs 21570 crore, of which IREL's stake is put at Rs 15130 crore. As per the scheme of restructuring, each shareholder of Indiabulls Financial Services will be entitled to one share in IREL.

Recently, Indiabulls Financial Services had acquired 100% equity of Noble Realtors, a company involved in construction and development of real estate projects.

Indiabulls Financial Services is transforming into a financial services power house. The company, earlier focussed on stock broking, has warmed up to consumer finance and realty businesses.

For Q2 September 2006, the company reported 59.20% rise in net profit to Rs 30.63 crore (Rs 19.24 crore). Revenue advanced 21% to Rs 65.87 crore (Rs 54.42 crore).