Shares of Indiabulls Real Estate tumbled 20 per cent on Tuesday after the National Company Law Tribunal, Chandigarh bench, withheld the merger of realty firm Embassy Group's certain residential and commercial projects with the company.
On the NSE, it fell sharply by 20 per cent to finish at Rs 55.40 per piece -- its lower circuit limit
Shares of Indiabulls Real Estate tumbled 20 per cent on Tuesday after the National Company Law Tribunal, Chandigarh bench, withheld the merger of realty firm Embassy Group's certain residential and commercial projects with the company.
The stock tanked 19.98 per cent to settle at Rs 55.34 apiece on the BSE.
On the NSE, it fell sharply by 20 per cent to finish at Rs 55.40 per piece -- its lower circuit limit.
In volume terms, 20.29 lakh shares of the company were traded on the BSE and over 3.93 crore shares on the NSE during the day.
The company's market valuation fell Rs 748.59 crore to Rs 2,997.63 crore.
Mumbai-based Indiabulls Real Estate Ltd (IBREL) said it will decide on the next course of action after reading the full judgement and will explore all options, including filing an appeal against the order of the National Company Law Tribunal (NCLT) before the appellate tribunal.
In August 2020, Bengaluru-based realty firm Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cashless scheme of amalgamation. Embassy Group will become the promoter of the merged entity.
Through a regulatory filing, IBREL informed that "the sanction to the merger of NAM Estates Pvt Ltd (NAM Estates) and Embassy One Commercial Property Developments Pvt Ltd (Embassy One) into IBREL has been withheld by the National Company Law Tribunal, Chandigarh Bench".
IBREL said the merger scheme has already been sanctioned by the NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, on April 22, 2022.
"However, the NCLT, Chandigarh Bench, which has jurisdiction over IBREL, had earlier raised certain concerns based on the objections cited by the Income Tax department to the merger.
"IBREL strongly believes that these 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 said in the filing.
IBREL said it will await the detailed order to further evaluate the next steps and shall 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.