Embassy Group proposes to merge 11 projects with Indiabulls Real Estate

NEW DELHI: Embassy Group has proposed to merge about 11 real estate projects having nearly 61.9 million sq ft area with Indiabulls Real Estate (IBREL) and take control of the merged entity, the later informed in a BSE filing on Wednesday.

Currently, Embassy has around 14 per cent stake in IBREL which it bought in June 2019 for Rs 950 crore in an open market transaction. After merger it has proposed to take controlling stake and become promoter of the merged entity.

IBREL said a panel will be constituted to value the projects proposed to be merged and arrive at a swap ratio.

“…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, to be placed before the Board for their approval in four weeks from today,” the company said in the regulatory filing.

On 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.

The resultant shareholders of the amalgamated company will be as follows:

1. IBREL Shareholders
2. Embassy – Promoters
3. Embassy – Institutional Investors

The projects that have been proposed to be merged are: Pristine, Grove, Boulevard, Lake Terraces, Springs, Embassy Residency, Embassy One, Concord Business Park, Knowledge Park, Embassy ACC Prism and Embassy Cornerstone.