Indiabulls Real Estate Up 7% On Merger Agreement With Embassy Group

On Wednesday, Indiabulls Real Estate shares jumped as much as 7.1 percent to an intraday high of Rs 78.85 at opening trade. On the previous day, the company, NAM Estates (NAM) and Embassy One Commercial Property Developments (NAM Opco) said in a joint statement that they have entered into a definitive merger.

NAM and NAM Opco are subsidiaries of the Embassy Group.

The combined entity will be renamed as Embassy Developments Ltd, will be co-headquartered in Mumbai and Bengaluru.

"The merged entity will have a balanced mix of commercial and residential assets which should provide a natural hedge against cyclicality and shall benefit from the new promoter, Mr. Jitendra Virwani, chairman of the Embassy Group," Indiabulls Real Estate said in its statement.

IBREL's existing shares to be valued at Rs 92.50 per share, a 25.7 percent premium to 18 August's closing price and NAM shareholders will get 6.619 shares of IBREL for every 10 shares of NAM. The combined listed entity shall be owned 44.9 percent by Embassy Group, 26.2 percent by the existing public & institutional shareholders, 9.8 percent by existing IBREL Promoter Group and 19.1 percent by BREP & other Embassy institutional investors.

The merger is expected to be completed by September 2021.