IndiaBulls & Embassy Group Merger - Angel Broking

Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

"Indiabulls Real Estate (IBREL) and Embassy Group subsidiaries enters into definite merger, combined entity to be renamed as Embassy Developments. The proposed merger will create one of India's leading listed real estate development platforms with launched/planned area totaling to 80.8 mn sq. ft, having 53% commercial and 47% residential assets, and 30 projects with key geographical focus in Mumbai (MMR), NCR, and Bengaluru. NAM Estates and Embassy One Commercial Property Developments, both Embassy group entities, and Indiabulls Real Estate (IBREL) have entered into definitive merger documentation to amalgamate ongoing, completed & planned residential and commercial projects of these two subsidiaries. IBREL's shares are being valued at Rs 92.50 per share, NAM shareholders will get 6.619 shares of IBREL for every 10 shares of NAM whilst NAM Opco shareholders will get 5.406 shares of IBREL for every 10 shares in NAM Opco. The resultant listed entity shall be owned 44.9% by Embassy Group, 9.8% by promoters of Indiabulls real estate and 26.2% by other shareholders. This merger will provide diversification to shareholders of Indiabulls Real Estate towards a portfolio mix of residential and commercial development."

Shares of INDIABULLS REAL ESTATE LTD. was last trading in BSE at Rs.70.85 as compared to the previous close of Rs. 73.55. The total number of shares traded during the day was 763669 in over 4500 trades.

The stock hit an intraday high of Rs. 78.8 and intraday low of 70.35. The net turnover during the day was Rs. 55682329.

Source : Equity Bulls

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