Could This Real Estate Stock Surge If NCLT Grants Final Merger Approval?

The real estate stock of India Bulls Real Estate could surge should the NCLT grant approval for the merger. Merger with Embassy group is in final stages of NCLT review the and the next hearing in Chandigarh scheduled on Sep 8, 2022. The proposed scheme for amalgamation of NAM Estates & Embassy One Commercial Property Developments into the Company is underway.

Should the merger be approved, we should see action in the India Bulls Real Estate soar. The shares have already jumped in the last few weeks and a further upside is likely. Having said that we are not recommending buying on news.

In February 2021, the Competition Commission of India had given its nod for the proposed merger of Embassy Group firms - NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd - with India Bulls Real Estate. Embassy Group has around 14 percent stake in India Bulls Real Estate and the same will increase to 45 percent after the merger of assets of these two companies.

Apart from this another interesting development at the company is the fact that the company has managed to cut its debt.

The company in an investor presentation said its net debt stood at Rs 464 crore at the end of June quarter, as against Rs 1,005 crore as on March 31, 2022. The stock of the company was last seen trading at Rs 92 on the National Stock Exchange.