Indiabulls Real Estate debuts and declines

The stock hit a low of Rs 359 and a high of Rs 414.80. Exchanges have set Rs 407 as base price for the scrip with a 20% price band. A strong 11.1 lakh shares changed hands in the counter on BSE. Indiabulls Real Estate (IBREL) was formed following the demerger of the real estate business of Indiabulls Financial Services (IBFSL). The company was listed on the bourses today.

It may be recalled that as part of the demerger scheme of IBFSL, a share of IBREL was issued for every share held in IBFSL with 9 January 2007 as record date. Accordingly, trading in equity shares of IBFSL was done on ex-entitlement basis with effect from 2 January 2007. IBFSL stock had settled at Rs 659.65 on BSE on 29 December 2006, the last day when the stock was trading cum-entitlement basis (for allotment of IBREL shares). At the moment of writing this, IBFSL was hovering at Rs 364.

The total equity capital of IBREL is Rs 35.93 crore, consisting of 17.96 crore shares of Rs 2 each. Avoid all Real Estate stocks until further notice.