Indiabulls Real Estate shares dive 18% after NCLT blocks NAM Estates & Embassy One Commercial Property merger

The stock price of Indiabulls Real Estate plummeted after the announcement.

On Tuesday, Indiabulls Real Estate Limited stated through stock market filing that the National Company Law Tribunal, Chandigarh Bench has blocked the merger between NAM Estates and Embassy One Commercial Property Developments Private Limited.

NAM Estates and Embassy One’s merger was first approved on April 22, 2022, by the Hon’ble NCLT, Bengaluru Bench. However, the Income Tax department’s objections to the merger prompted the Hon’ble NCLT, Chandigarh Bench, which has jurisdiction over IBREL, to express prior reservations.

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IBREL said that the NCLT was wrong to dismiss its concerns since they were “unfounded, unjustified, and do not impact the merger in a significant manner.” “The Company 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 company said in an exchange filing, adding that it would wait for the detailed order before making any further decisions.

There was unanimous support for the merger from shareholders present at the vote, or 99.9987 percent. A meeting of Indiabulls Real Estate’s board of directors is scheduled for tomorrow to review the company’s future plans and strategies.

Indiabulls Real Estate stock plummeted Tuesday as the merger was delayed. The share price dropped by almost 18 percent.