Indiabulls Real Estate Ltd (IBREL) is doing well today morning, opening 2% higher at Rs.156.80 and rising further to an intraday high at Rs.162, up over 5%. Its 52-week high is at Rs.174.80.
The stock is up after the company said today that it has sought the NCLT approval to the scheme of merger of NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd. with Indiabulls Real Estate.
According to the terms approved by boards of both the merging entities, Indiabulls shares were valued at Rs. 92.5 per share. Shareholders of Embassy subsidiary NAM will get 6.619 shares of Indiabulls Real Estate for every 10 shares of NAM, while NAM Opco shareholders will get 5.406 shares of Indiabulls Real Estate for every 10 shares in NAM Opco.
Hoping to complete it by Q3FY22, this will be achieved through a cashless structure as Embassy subsidiaries--NAM Estates (NAM) and Embassy One Commercial Property Developments (NAM Opco)--will swap shares with Indiabulls Real Estate. The combined listed entity will be 44.9% owned by Embassy Group, 26.2% by the existing public and institutional shareholders, 9.8% by existing IBREL promoter group and around 19.1% by the Blackstone group and other Embassy institutional investors.
Following the completion of this merger, the Embassy Group will become the promoters of the combined entity, known as Embassy Developments.