Embassy Group Proposes To Merge 11 Projects With Indiabulls Real Estate, Take Control Of Merged Entity

Bengaluru-based realty firm Embassy Group has proposed to merge around 11 real estate projects comprising nearly 62 million square feet area with Indiabulls Real Estate Ltd. and take control of the merged entity.

Embassy Group already has around 14% stake in Mumbai-based Indiabulls Real Estate, which is part of the Indiabulls Group. After this proposed plan, Embassy will have a controlling stake and become promoter of the merged entity.

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

In June 2019, the promoters of Indiabulls sold 14% stake through open market transactions to Embassy Group for Rs 950 crore, as part of their strategy to focus on financial services and exit from realty business.

Indiabulls had in January this year announced its proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Embassy Property Developments Pvt. Ltd. with itself.

In a regulatory filing on Wednesday, Indiabulls Real Estate said it has received the proposal from Embassy detailing their various assets for the merger of Embassy with itself.

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

The proposed merger will be achieved through a cashless scheme of amalgamation, it added.

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 IBREL would initiate the process of de-promoterisation.

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 filing said.

Embassy has proposed to merge various assets into Indiabulls Real Estate, pursuant to the merger scheme, subject to execution of all the relevant transaction documents.

With this proposed merger deal, Embassy Group seeks to enter into Mumbai and Delhi-NCR markets, the two biggest property markets in the country.

Sources had said earlier that the Indiabulls Group plans to merge over dozen remaining assets of Indiabulls Real Estate with a new entity that will be led by the Embassy Group.

Before this merger proposal with the Embassy Group, Indiabulls sold many commercial assets to global investment firm Blackstone.