Shares of Indiabulls Ltd surged nearly 6 percent in intraday trade on Friday, touching a fresh 52-week high of Rs 29.32, compared to the previous closing price of Rs 27.93, after investors reacted positively to the company’s proposed Rs 1,000 crore fundraising through a preferential issue of convertible warrants.
The stock recorded its highest level in the past one year at Rs 29.32, while its 52-week low stands at Rs 8.90. The company currently commands a market capitalisation of approximately Rs 6,210 crore.
The rally follows the company’s announcement that its Board of Directors has approved the issuance of up to 51.55 crore convertible warrants on a preferential basis. The warrants will be issued at Rs 19.40 per warrant, including a premium of Rs 17.40 per equity share, raising approximately Rs 1,000.07 crore.
Each warrant is convertible into one fully paid-up equity share of the company and may be exercised in one or more tranches within 18 months from the date of allotment.
Strong promoter participation
The proposed preferential issue will see participation from both promoter group entities and institutional investors. Among the promoter entities, Phanes Limited is slated to receive 22.52 crore warrants, while Hermes Limited will be allotted 14.02 crore warrants, reflecting continued promoter confidence in the company.
On the institutional side, EBISU Global Opportunities Fund Limited will be allotted 10 crore warrants, while Nyaasa Global Fund VCC – Nyaasa India EM Sub Fund will receive 5 crore warrants. Upon full conversion, the investors will collectively hold 51.55 crore equity shares arising from the exercise of these warrants.
Subject to shareholder approval
The proposed preferential allotment remains subject to shareholder approval and other regulatory clearances. To obtain shareholder consent, the company has convened an Extraordinary General Meeting (EGM) on July 2, 2026, which will be held through video conferencing or other audio-visual means.
According to the company, the issuance will be carried out in compliance with the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Fundraising to strengthen capital base
The company stated that the proposed capital infusion is aimed at strengthening its equity capital base and enhancing financial flexibility. The proceeds are expected to support future growth initiatives and capital allocation plans while reinforcing the company’s financial position.
Indiabulls Ltd operates as a diversified business group with interests across multiple sectors through its subsidiaries and investments. The company continues to pursue strategic fundraising and expansion opportunities as part of its long-term growth strategy.