Nam Estates-Embassy One Merger Faces Delay, Says Indiabulls Real Estate

Shares of Indiabulls Real Estate Limited (IBREL) on Tuesday fell over 19 per cent after the real estate developer announced that the sanction to the merger of NAM Estates Private Limited and Embassy One Commercial Property Developments Private Limited into the company has been withheld by National Company Law Tribunal (NCLT), Chandigarh Bench.

The stock fell 19.98 per cent at Rs 55.34 apiece on the BSE on Tuesday.

“IBREL strongly believes that these objections and concerns were unfounded, unjustified and do not impact the merger in a significant manner and had accordingly addressed the same before the NCLT,” the company said in the regulatory filing.

“The Company will await the detailed order to further evaluate the next steps and shall explore all options, including filing an appeal against the order of NCLT, Chandigarh Bench, before the National Company Law Appellate Tribunal (NCLAT) at the earliest,” the statement added.

The company said in BSE filing, “The merger already stands sanctioned by NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, on 22 April 2022. However, the NCLT, Chandigarh Bench, which has jurisdiction over IBREL, had earlier raised certain concerns based on the objections cited by the Income Tax department to the merger.  

Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.

Under the terms of the agreement, IBREL's shares are valued at Rs 92.5 per share.

IBREL has a land bank of 3,280 acre, near major metropolitan cities. It has a presence in six cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Jodhpur, Vadodara, Vizag and Indore.

(With agencies input)