The shares of Indiabulls Real Estate fell on Tuesday as the NCLT withheld its merger with NAM Estates and Embassy One. The shares saw a fall of close to 18 per cent.
NCLT refuses merger with NAM Estates and Embassy One
The National Company Law Tribunal, Chandigarh Bench on Tuesday withheld the merger of NAM Estates private Limited and Embassy One Commercial Property Developments Private Limited into Indiabulls Real Estate Limited, the company announced through an exchange filing.
The merger is already sanctioned by the Hon’ble NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, on April 22nd 2022. However, the Hon’ble 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.
The company in the exchange filing said, "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 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 Hon’ble NCLT, Chandigarh Bench, before the Hon’ble National Company Law Appellate Tribunal at the earliest."
The merger had received approval from 99.9987 per cent of the shareholders who were present during the voting. Indiabulls Real Estate added that the board of directors will be meeting over the next day to discuss its plan and strategy to move forward.
Indiabulls Real Estate shares
The shares of Indiabulls Real Estate on Tuesday at 2:30 pm IST were at Rs 56.75, down by 18.56 per cent.
