Indiabulls Real Estate cuts net debt by 54% to Rs 464 million

Indiabulls Real Estate reduced its net debt by 54% to Rs 464 million in the three months ended June compared to the March quarter.

Additionally, according to an investor presentation by Indiabulls Real Estate Ltd (IBREL), the merger with Embassy Group is in the final stages of review by the National Company Law Tribunal (NCLT).

In an investor presentation, IBREL said its net debt stood at Rs 464 crore at the end of the June quarter, compared to Rs 1.05 crore on 31 March 2022. Total Debt He Decreased From Rs 1,310 Million To He Rs 739 Million.

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

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 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 in the final stages of NCLT review in Chandigarh is scheduled for September 8, 2022,” IBREL said in a presentation.

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.

Based in Mumbai, IBREL has a land bank on 3,280 acres near the metropolis. Based in his 6 cities: Delhi NCR, Mumbai Metropolitan Region (MMR), Jodhpur, Vadodara, Vizag and Indore.

“We offer the option to monetize specific land banks in non-core areas with limited potential and increase our presence in strategic locations. We can develop projects that take advantage of potential opportunities without having to spend,” he added.

The company expects a net profit of Rs 856.6 billion from completed, ongoing and upcoming projects. There is unsold inventory of 12,736 kroner and receivables from customers for units already sold for 3,030 kroner, and the estimated cost to develop these projects is 7,201 kroner.

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.

Bangalore-based Embassy Group is one of the leading commercial real estate companies. The group, along with Blackstone, launched India’s first Real Estate Investment Trust (REIT) in 2019, raising his Rs 475 billion through a public offering. It also owns WeWork India.

(Only the headlines and photos in this report may have been modified by Business Standard staff. The rest of the content is auto-generated from syndicated feeds.)

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