Indiabulls Real Estate ties up Rs 5,166 crore for power plant

Indiabulls Real Estate has achieved financial closure for its Amravati thermal power plant project, according to sources close to the deal. SBI Capital Markets had the syndication mandate and Power Finance Corporation was the lead arranger for the deal. The 2640 mw coal-based power project is being developed in two stages of 1320 mw each. It will have 4 units of 660 mw each.

The power projects are being executed under Indiabulls group firm, Sophia Power Company Ltd. Indiabulls Real Estate holds 71.4% stake in the company, while 17.9% is held by FIM, the foreign venture capital fund managed by Farallon Capital Management LLC, and 10.7% by LNM India Internet Ventures.

Indiabulls Real Estate recently raised Rs 2,700 crore through qualified institutional placement, but the company has not yet disbursed the fund. Sources in the know said part of the money would be used for developing a project in Navi Mumbai at Kharghar. The company has launched nine residential projects till the last quarter and it does not intend to launch any project this quarter.