Indiabulls Real Estate to buy 11 residential, commercial projects from Embassy; stock down 4%

The proposed Amalgamation will be achieved through a cashless scheme of amalgamation.

Jul 16, 2020 12:07 IST India Infoline News Service

Indiabulls Real Estate seeks to enter into a merger of certain ongoing, completed and planned residential and commercial projects of Embassy Group entity. The Indiabulls Group-company said, "to give effect to the Amalgamation, the Board constituted committee of the Company is taking required steps including appointment of merchant bankers, lawyers and valuers to arrive at the swap ratio and definitive agreements".

The details of the merger will be placed before the Indiabulls Real Estate's board for approval in four weeks starting from July 15, 2020.

Embassy has proposed to merge the following Embassy assets into Indiabulls Real Estate.

Embassy's assets involve 11 resident and commercial projects involving Pristine, Grove, Boulevard, Lake Terraces, Springs, Embassy Residency, Embassy One, Concord Business Park, Knowledge Park, Embassy ACC Prism and Embassy Cornerstone.

Together these projects account for 61.9 Mn sqft which will be transferred to Indiabulls Real Estate.

Also, the proposed Amalgamation will be achieved through a cashless scheme of amalgamation.

Further, the Indiabulls Real Estate intimated exchanges that, on the filing of the Scheme of Amalgamation with the relevant regulatory authorities, Sameer Gehlaut, as a Promoter, along with the other existing Promoter Group entities of the Transferee Company shall initiate the process of de-promoterization and after the Scheme of Amalgamation is effective, Jitendra Virwani along with his other promoter entities will be the new promoters of the Amalgamated Company.

At around 12.33 pm, the Indiabulls Real Estate stock was trading at Rs58.20 per piece down by 3.80%.

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