June 5 (Bloomberg) -- Indiabulls Real Estate Ltd., India's fourth-biggest developer, fell to the lowest in almost a year in Mumbai trading after it delayed a share sale by its real estate investment trust in Singapore by a day.

Indiabulls dropped 7.1 percent to 382.75 rupees, the lowest since June 18, at 1:39 p.m. local time. The stock declined 21 percent this week and is the worst performer among the 14 companies on the Bombay Stock Exchange Realty index, which lost 12 percent in the period.

The offer will end tomorrow, the Mumbai-based company said in a statement to the Singapore stock exchange today. Indiabulls Properties Investment Trust is seeking as much as S$388.3 million ($283 million). The sale received bids for 1.8 times the number of shares offered to institutional investors, Ajit Mittal, chief executive officer for the investment trust, said today.

``We wanted to give more time to retail investors to participate,'' Mittal said by telephone from Mumbai. He declined to say how many offers were received from retail investors. ``Demand is good and is more than what we expected.''

Indiabulls Real Estate shares have declined 48 percent this year, mirroring a sell-off in property stocks amid declining land prices and rising borrowing costs. New Delhi-based developer Emaar MGF Land Pvt. scrapped plans for a $1.64 billion initial sale this year after failing to attract investors.

``It probably reflects the current investor aversion to real estate investments,'' said S. Amarnath, regional head at brokerage Religare Securities Ltd. ``There's not much interest in Indian paper overall.''

The Indiabulls property trust planned to sell 353 million shares at S$1 to S$1.10 apiece, according to a May 26 e-mail. Lakshmi Niwas Mittal, the world's fourth-richest man, agreed to buy 91 million shares in the trust, according to the e-mail.

`Apprehensive'

``We remain apprehensive about IBREL plans to list its Elphinstone and Jupiter properties in Singapore in the current market conditions,'' Sandeep Mathew, an analyst at BNP Paribas India Solutions Pvt., said in a note to clients on May 23. ``A strong balance sheet indicates that the listing is more of an effort to return cash to promoters.''

He recommends clients sell Indiabulls shares.

Merrill Lynch & Co. and Deutsche Bank AG are arranging the share sale, according to a prospectus filed by Indiabulls Properties to the Monetary Authority of Singapore.

Mark Tsang, a Hong Kong-based spokesman for Merrill, declined to comment.

To contact the reporters on this story: Sumit Sharma in Mumbai at sumitsharma@bloomberg.net

Last Updated: June 5, 2008 04:36 EDT