Indiabulls RE, Embassy merger delay unsettling stakeholders: Jitendra Virwani
Indiabulls Real Estate (IBREL) and Embassy Group is hampering decision-making process, impacting the listed real estate firm's growth plans and unsettling stakeholders, Jitendra Virwani, the group's chairman and founder, told ET.
First announced in 2020, the merger was expected to create one of India's largest property developers. The merger scheme has been approved by regulators and 99.99% of IBREL shareholders, and is currently awaiting nod from National Company Law Appellate Tribunal (NCLAT).
«The delay in the merger between the company (IBREL) and the Embassy Group has been detrimental for both the companies and their stakeholders due to its prolonged uncertainty,» Virwani said in an exclusive interaction. «With one promoter stepping off and the other not being able to take control, there has been a lag in decision making and in taking the company forward despite the real estate sector witnessing one of its best growth years.»
In May 2023, the NCLT withheld the proposed scheme of merger, following objections raised by the income tax department, though it dismissed minority shareholders' apprehensions on the deal.
«The impact of this delay is manifold with one shareholder who owns 20,000 shares out of a total of 541 million outstanding shares. The vision of the proposed merger is to create a strong development vehicle to house all future developments,» he said.
IBREL recently raised more than Rs 3,911 crore through a preferential allotment to a diverse group of investors, including Embassy Group and
