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Home > India > Business > PTI > Report

Mittal to buy Indiabulls' Singapore trust pie

May 13, 2008 20:10 IST

Lakshmi MittalĀ  has committed to buy units equivalent to a 3.9 per cent stake in Indiabulls [Get Quote] Properties Investment Trust, which is in process of listing in Singapore.

Mittal will purchase 91 million common units of IPIT at the offering price that will be determined through a book building process, but would 'not be obliged to subscribe and pay' for any of the units if the subscription cost exceeds Singapore dollar100.1 millionĀ (about $73 million).

Indiabulls Real Estate [Get Quote], part of diversified Indiabulls group with interests in financial services, power, retail and realty businesses, last week filed a prospectus with Monetary Authority of Singapore for an initial public offer of IPIT, estimated to raise about $300 million.

IPIT is a business trust registered under the laws of Singapore and is making an offer of its units to public and institutional investors and the IPO is expected to be priced towards the end of the month.

Investment by Mittal family, which has already invested in a host of other units of Indiabulls group, in IPIT is being routed through Mauritius-based Wellmark Investments Limited.

Wellmark is an investment entity that invests on behalf of L N Mittal and family. According to the IPO prospectus of IPIT, Wellmark has entered into a subscription agreement to subscribe for 91 million common units at the offering price.

However, Wellmark Investments would not be obliged to subscribe and pay for any of the units in the event of subscription price of each unit under the IPO of IPIT exceeds Singapore dollars 1.10 (about $0.80).

These units would, in aggregate, constitute 3.9 per cent of the total issued units as at the listing date, the prospectus said.

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