Shares of Indiabulls Real Estate slumped 19 per cent in Tuesday’s trade after the real estate developer said the sanction to the merger of NAM Estates Private Limited and Embassy One Commercial Property Developments (Embassy One) into Indiabulls Real Estate has been withheld by the National Company Law Tribunal (NCLT), Chandigarh Bench.
It noted that the merger already stands sanctioned by the Bengaluru Bench of NCLT, which has jurisdiction over NAM Estates and Embassy One, on April 22, 2022. “However, the Hon’ble NCLT, Chandigarh Bench, which has jurisdiction over Indiabulls Real Estate, had earlier raised certain concerns based on the objections cited by Income Tax department to the merger,” Indiabulls Real Estate said in BSE filing.
Following the development, shares of Indiabulls Real Estate fell 18.88 per cent to hit a low of Rs 56.10 on BSE. With the steep fall, the real estate stock is down 32 per cent year-to-date.
Indiabulls Real Estate said it strongly believes that the 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, it said, will await the detailed order to further evaluate the next steps and would explore all options, including filing an appeal against the order of the NCLT, Chandigarh Bench, before the National Company Law Appellate Tribunal(NCLAT) at the earliest.
It pointed out that the merger has already received overwhelming support from 99.9987 per cent of its shareholders, who voted on the same and has also received approval from other regulators. Indiabulls Real Estate’s board shall be meeting over the next day to chalk out its plan and strategy to move forward and shall communicate the same to all its stakeholders.
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