Indiabulls Real Estate to challenge NCLT order stalling merger with Embassy

The Chandigarh bench of the National Company Law Tribunal (NCLT) had earlier this month stayed the merger of certain residential and commercial projects of Embassy Group with Indiabulls Real Estate.

“..the Board of Directors of the Company at its meeting held today i.e. the 17th May, 2023 discussed and evaluated the legal options available with the Company and decided to challenge the said order by filing an appeal before the Hon’ble National Company Law Appellate Authority. Tribunal (“NCLAT”), New Delhi,” Indiabulls Real Estate said in a filing.

The Board of the Company has authorized the Restructuring Committee to take necessary steps in this regard.

Bengaluru-based Embassy Group in August 2020 entered into a definitive agreement to merge some of its residential and commercial projects with Indiabulls Real Estate through a cashless scheme of amalgamation. As per the deal, Embassy Group will become the promoter of the merged entity.

Read also: IBREL stock plunges 20% after NCLT stays merger of Embassy group firms with Indiabulls

The scheme of amalgamation was already approved by the Bengaluru bench of NCLT, which has jurisdiction over NAM Estates and Embassy One, in April 2022.

However, the Chandigarh Bench of NCLT, which has jurisdiction over IBREL, stayed the concerns marking the merger on the basis of objections cited by the Income Tax Department to the merger.

Indiabulls Real Estate share price remains under pressure amid delay in merger. The share price has gained more than 28% in the last one year.

Shares of Indiabulls Real Estate were trading down 2.44% at 12:25 pm 54.49 per share on BSE.

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