Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Indiabulls Real Estate's shares fell 20% on last week after the National Company Law Tribunal's Chandigarh bench refused to approve the merger of realty firm Embassy Group's specific residential and commercial projects with the company. It dropped significantly by 20% to close at Rs. 55.40 per piece on the NSE which was below the circuit limit. The company's shares were traded in a total volume of 20.29 lakh on the BSE and over 3.93 crore on the NSE during the day. The market value of the company decreased by Rs 748.59 billion to Rs 2,997.63 billion.
Indiabulls Real Estate Ltd. (IBREL), a Mumbai-based company stated that it will decide on the next course of action after reading the whole ruling and will consider all alternatives, including bringing an appeal against the NCLT's order before the appellate tribunal.
The Embassy Group, a real estate company with offices in Bengaluru and IBREL have a definitive merger agreement that would allow for the cashless merging of certain residential and commercial developments in August 2020. The promoter of the amalgamated entity will be Embassy Group.
IBREL disclosed in a regulatory filing that the National Company Law Tribunal, Chandigarh Bench has refused to approve the union of NAM Estates Pvt Ltd (NAM Estates) and Embassy One Commercial Property Developments Pvt Ltd (Embassy One) into IBREL. According to IBREL, the NCLT Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One approved the merger plan on April 22, 2022.
However, the NCLT Chandigarh Bench, which has jurisdiction over IBREL, had previously expressed some worries based on the criticisms made by the Income Tax department against the merger. IBREL had addressed these issues and objections before the NCLT because it is of the firm belief that they are unfounded, unreasonable, and do not significantly affect the merger.
The National Company Law Appellate Tribunal (NCLAT) will be contacted as soon as possible in order to hear an appeal against the ruling of the NCLT, Chandigarh Bench. IBREL stated that it will wait for the detailed order before determining the next course of action and will examine all alternatives.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
