Shares of Indiabulls Real Estate Ltd (IBREL) on Monday jumped 40% on Monday after the property developer revealed plans to carve out its leasing and commercial businesses into a separate entity.The IBREL board that met on Monday morning decided to create a new vertical to house the two businesses.
The residential business will continue to remain with IBREL. The new entity—Indiabulls Commercial Assets Ltd (IBCAL)—will hold existing leasing and commercial assets, as well as future projects. IBREL expects the new vertical to earn a rental income of Rs692 crore in 2017-18.
The board also decided to explore opportunities for bringing strategic investments into the new entity, the company informed the stock exchanges.
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