Farallon, Mittal buy stake in Indiabulls infrastructure
US based hedge fund Farallon Capital and Lakshmi Niwas Mittal have bought stake in Indiabulls Infrastructure development, a wholely owned subsidiary of Indiabulls Financial Services Ltd. Mittal has taken 3.33 percent for Rs. 111.75 Crore and Farallon has taken 10 percent for Rs. 335.25 crores. This has reduced the stake of Indiabulls Financial Services Ltd. to 86.7 percent in the company. The transaction has valued Indiabulls Infrastructure at Rs. 3350 crore, the company is setting up a 6000 acre SEZ in Maharashtra. The transaction has given a boost to indian real estate and infrastructure development companies. India is a growing economy and there is a huge opportunity for infrastructure development companies to grow with the growing economy of the country. With Mittal and Farallon taking stake in a infrastructure development company, the investor confidence in real estate and infrastructure development companies has increased. Real estate companies like Unitech, Ansal Properties, Mahendra Gesco have witnessed a sharp rise in their stock prices recently and overwhelming response to the IPO of Parsvnath developers has confirmed the investor confidence in real estate sector. Stocks of infrastructure development companies like GVK infrastructure and GMR infrastructure have also surged recently in wake of the upcoming oppertunity of infrastructure building announced by the Government. It is likely that construction, infrastructure and realty space will continue to grow at a rapid pace in the coming years.