Indiabulls Real Estate to challenge NCLT order withholding merger with Embassy

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

“..the Board of Directors of the Company, in their meeting held today i.e. May 17, 2023, has discussed and evaluated 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 Tribunal (“NCLAT”), New Delhi,” Indiabulls Real Estate said in a filing.

The company’s board has further authorized the Reorganization Committee to take necessary steps in this regard, it added.

The Bengaluru-based Embassy Group entered into a definitive agreement in August 2020 to merge its certain 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.

Also Read: IBREL stock tumbles 20% after NCLT withholds merger of Embassy group firms with Indiabulls

The merger scheme was already sanctioned 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, withheld the merger flagging concerns based on the objections cited by the Income Tax department to the merger.

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

At 12:25 pm, the shares of Indiabulls Real Estate were trading 2.44% lower at ₹54.49 apiece on the BSE. 

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