Embassy Group: Indiabulls Real Estate net debt down 54%, merger with Embassy Group underway

reduced its net debt by 54% to Rs 464 crore in the three months ended June compared to the March quarter. Additionally, the merger with Embassy Group is in the final stages of review by the National Company Law Tribunal (NCLT), the company said in an investor presentation.

Its net debt was Rs 464 crore at the end of the June quarter compared to Rs 105 crore on 31 March 2022. Total debt he reduced from Rs 1.31 billion to Rs. 73.9 billion.

Operationally, the company’s turnover decreased to INR 297 million in the first quarter of this year from INR 350 million in the same period last year.

In April, IBREL raised Rs 865 crore mainly by issuing shares to institutional investors for land acquisition and debt relief.

In August 2020, Embassy Group entered into a definitive agreement to merge certain residential and commercial projects with IBREL through a cashless scheme of merger. Embassy Group will be the founder of the combined entity.

The merger with the embassy, ​​which is in the final stages of NCLT review, and the next public hearing in Chandigarh are scheduled for September 8, 2022, according to IBREL. It added that plans are underway to merge NAM Estates and Embassy One Commercial Property Developments into IBREL.

In February 2021, the Competition Commission of India (CCI) approved the proposed merger of Embassy Group companies NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd with IBREL.

Embassy Group owns approximately 14% stake in IBREL, which will increase to 45% after the merger of the assets of these two companies.

Post-merger, the combined entity has 80.8 million square feet of development and planned development potential. The combined entity has approximately 30 projects.

Under the terms of the agreement, IBREL’s shares are valued at Rs 92.5 per share.

Last week, the company reported a consolidated net loss of Rs 5.195 billion for the quarter ended June due to lower earnings. Its net profit was Rs 476 crore in the same period last year.

Total revenue decreased to INR 164.18 million in the April-June quarter from INR 532.03 million in the same period last year, according to regulatory filings.

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