The restructuring will facilitate proposed divestment of the company's assets in Chennai to Blackstone Group.
Shares of Indiabulls Real EstateÂ (IBREL) jumped 7 percent after the board approved a scheme of arrangement to facilitate divestment ofÂ assets in Chennai to the US-based Blackstone Group.
IBRE had earlier this year agreed to sell its commercial projectÂ One Indiabulls Park in Chennai to Blackstone Group.
After the demerger, the company's Chennai assets, currently owned byÂ India Land and Properties Limited (ILPL), will be demerged into Indiabulls Infrastructure Limited (IIL).
IIL is an indirect subsidiary of Indiabulls Real Estate, while ILPL is a direct subsidiary.
The new scheme is pending approval from market regulator Securities and Exchange Board of India (SEBI) and National Company Law Tribunal (NCLT).