IndiaBulls Real Estate and Embassy Group Merger Update
This page contains the most recent information about the status of the Indiabulls Real Estate and Embassy Group Merger. The merger of IndiaBulls Real Estate and Embassy Group was first announced in 2019, but the merger has been facing regulatory hurdles and has been delayed multiple times. As of 2021, the merger is still pending regulatory approval and has not been completed till the time this article was published.
IndiaBulls Real Estate and Embassy Group Merger Announcement
Embassy Group has around 14 percent stake in IBREL and the same will increase to 45 percent after the merger of assets of these two companies. Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 31 projects across India with a planned area of 78.7 million sq. ft. It will be co-headquartered in Mumbai and Bengaluru. Post-merger, Chairman of Embassy group Mr. Jitendra Virwani, and others will be classified as new promoters of the merged entity. The merged entity will Diversify towards a balanced mix with 56% commercial and 44% residential properties.
- Application for approval of a merger is currently listed with NCLT for approval
- Nods received from SEBI, Stock exchanges, CCI, MCA (Hyderabad) Backgrounder of merger
- Assets of Embassy Group to merge into Indiabulls Real Estate
- The merged entity will have a mix of commercial and residential assets
- The new promoter is Mr. Jitendra Virwani, chairman of the Embassy Group
- Combined entity to be renamed Embassy Developments Ltd
- IBREL is to be valued at ₹ 92.50 per share
- Swap ratio to be 6.619 shares of IBREL for every 10 shares of NAM Estates Pvt Ltd
Why this merger has been delayed?
The merger of IndiaBulls Real Estate and Embassy Group has been delayed due to a variety of reasons. Some of the factors that may have contributed to the delay include regulatory hurdles, legal challenges, and market conditions.
Regulatory approval is one of the main reasons for the delay of the merger. The merger of the two companies requires clearance from various regulatory bodies such as the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), and the Competition Commission of India (CCI). These approvals take time and any changes in the approval process can cause further delays.
Additionally, the merger may have been delayed due to ongoing litigation and legal challenges. IndiaBulls Real Estate has been facing several legal cases and investigations regarding their business practices and financial performance. This has made it difficult for the company to move forward with the merger.
Lastly, market conditions can also play a role in delaying mergers. The merger of IndiaBulls Real Estate and Embassy Group was announced in 2019, since then the global economy has been impacted by the COVID-19 pandemic and the resulting economic downturn. It may have made it more difficult to secure financing for the merger or to determine a fair value for the merged company.
It is important to note that these are some possible reasons that may have contributed to the delay of the merger, and the exact reasons may be different or more complex.
What is the probability of this merger happening?
The exact probability of the merger happening is difficult to determine, as it is dependent on a variety of factors such as regulatory approvals, legal challenges, and market conditions.
It’s important to note that the merger process is a complex and dynamic process, and many mergers don’t happen even if they are announced. The final outcome of the merger depends on the approval of the regulators, legal and compliance issues, the agreement of shareholders and other stakeholders, and the market conditions.
It would be best to keep an eye on the updates and developments regarding this merger, and also consult with a financial advisor before making any investment decisions based on the expectation of this merger.
What would be the stock price of the merged entity?
Please note, it is nearly impossible to predict the stock price of the merged entity formed by IndiaBulls Real Estate and Embassy Group. The stock price of a company is determined by a variety of factors such as the company’s financial performance, market conditions, and investor sentiment. The stock price of a merged entity would be influenced by the financial performance and market conditions of both companies involved in the merger and how they are integrated together.
It is also important to note that stock prices can be highly volatile and can fluctuate greatly in a short period of time, making it difficult to predict future stock prices with certainty. Additionally, the stock price of a merged entity would also be influenced by the terms and conditions of the merger, such as the exchange ratio and the number of shares issued in the merged entity.
It’s important to keep in mind that any predictions or estimates of stock prices are just that, predictions, they are not a guarantee of future performance and the actual stock price may differ significantly. It would be best to consult with a financial advisor or conduct your own research before making any investment decisions.
What is the future prediction of IndiaBulls Real Estate stock price?
It is important to note that stock prices are influenced by a variety of factors such as economic conditions, company performance, and investor sentiment, and can be highly volatile. It is impossible to predict with certainty what will happen to a stock price in the future. So, it is recommended to consult with a financial advisor or conduct your own research to make informed investment decisions.