Embassy Group regrets to announce that the Hon’ble National Company Law Tribunal (“NCLT”), Chandigarh Bench has withheld its sanction to the merger of NAM Estates Private Limited (“NAM Estates”) and Embassy One Commercial Property Developments Private Limited (“Embassy One”) with Indiabulls Real Estate Limited (“IBREL”).
Embassy Group Chairman, Jitu Virwani, expressed his disappointment at the decision and said, “We have provided all the necessary details and clarifications sought by the Hon’ble NCLT regarding the details of NAM Estates and Embassy One and have also meticulously addressed the objections cited by the Income Tax department, including giving an undertaking that any past tax issues will be borne by Embassy Group and not by the public shareholders of IBREL. However, the Hon’ble NCLT has taken an extreme step of not approving the merger. This development is specially surprising given that the merger already stands sanctioned by the Hon’ble NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, as far back as April 2022, and that other regulators such as CCI, BSE, NSE, Regional Director and Official Liquidator have also approved the Scheme.”
Embassy Group remains the largest shareholder in IBREL and is committed to the creation of one large platform and will explore all possible options at this stage. It also supports the current management and board members of IBREL and believes that they will act in the best interest of all shareholders.
Out of the total allocation of 143,999,850 units allocated to the Anchor Investors, 47,999,700 units (i.e., 33.33% of the total allocation to Anchor Investors) were allocated to 3 domestic mutual funds through a total of 6 schemes.
