Embassy Group will turn into the promoter of the merged entity. (Representative picture)
Mumbai-based Indiabulls Real Estate (IBREL) stated it’ll resolve on the following plan of action after studying the total judgement
The National Company Law Tribunal, Chandigarh bench, has withheld the merger of realty agency Embassy Group’s sure residential and industrial initiatives with Indiabulls Real Estate.
Mumbai-based Indiabulls Real Estate (IBREL) stated it’ll resolve on the following plan of action after studying the total judgement and can discover all choices, together with submitting an attraction towards the order of the National Company Law Tribunal (NCLT) earlier than the appellate tribunal.
In August 2020, Bengaluru-based realty agency Embassy Group entered right into a definitive settlement to merge its sure residential and industrial initiatives with IBREL by way of a cashless scheme of amalgamation. Embassy Group will turn into the promoter of the merged entity.
Through a regulatory submitting, IBREL knowledgeable that “the sanction to the merger of NAM Estates Pvt Ltd (NAM Estates) and Embassy One Commercial Property Developments Pvt Ltd (Embassy One) into IBREL has been withheld by the National Company Law Tribunal, Chandigarh Bench”.
IBREL said the merger scheme has already been sanctioned by the NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, on April 22, 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.
“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 corporate stated within the submitting.
IBREL stated it’ll await the detailed order to additional consider the following steps and shall discover all choices, together with submitting an attraction towards the order of the NCLT, Chandigarh Bench, earlier than the National Company Law Appellate Tribunal (NCLAT) on the earliest.
The merger has already obtained overwhelming assist from 99.9987 per cent of its shareholders who voted on the identical and has additionally obtained approval from different regulators, it added.
“IBREL’s board shall be assembly over the following day to chalk out its plan and technique to maneuver ahead and shall talk the identical to all its stakeholders,” the filing said.
In February 2021, the Competition Commission of India (CCI) approved the proposed merger of Embassy Group firms — NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd — with IBREL.
At present, Embassy Group has around 14 per cent stake in IBREL and the same will increase to 45 per cent after the merger of assets of these two companies.
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.
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(This story has not been edited by News18 workers and is printed from a syndicated information company feed)
