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The promoters of Indiabulls group will invest Rs 450 crore in Indiabulls Real Estate (IREL) in one of the largest fund infusions by a promoter in the real estate industry.

Promoters Sameer Gehlaut, Saurabh Mittal and Rajiv Rattan will together buy 1.5 crore warrants of Indiabulls Real Estate (IREL) at Rs 300 per share, a 15% premium to IREL’s Friday closing price of Rs 260.75. Their combined stake in the company will rise to about 35% upon conversion of the warrants into equity shares.

The transaction is one of the largest fund infusions by any promoter in the real estate industry. Mr Gehlaut will invest Rs 225 crore, with the other two promoters infusing Rs 112.5 crore each. IREL was formed by the demerger of the real estate business of Indiabulls Financial Services (IFSL) last year. Funds from this preferential offer will be used for the company’s various real estate development projects.

It holds a large swathe of properties including the Jupiter and Elphinstone mills in Mumbai. IREL will build a vast commercial complex comprising two towers of 16 storeys each and two towers of 14 storeys each. The Elphinstone Mills complex will house corporate offices.

IREL, through its subsidiaries, is also building a special economic zone in Raigad district of Maharashtra, a township in Sonepat Haryana and housing projects in Gurgaon, also in Haryana. IREL recently raised about Rs 1,200 crore through a listing on the Alternative Listing Market in London.

India’s real estate sector is booming, thanks to a surging economy. Indiabulls is among the many real estate firms that is trying to take advantage of this opportunity. But three interest rate hikes in the past six months have cast doubts over the future pace of growth. Banks have already forecast a fall in mortgage portfolio, and property prices in Mumbai at least have dipped.