Merger Plan: Indiabulls Real Estate, Embassy to fix valuation, swap ratio

The proposed amalgamation will see Indiabulls Real Estate exit from real estate business completely. As per the plan, Embassy Group’s real estate assets will be merged with the Mumbai-based company’s 31 million sq ft of assets under development.

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Spokespersons of the two companies confirmed the respective scheduled meetings of their boards.
MUMBAI: Indiabulls Real Estate and Embassy Group will finalise the valuation and swap ratio for their proposed merger on Tuesday. In separate meetings, the two real estate developers will also decide the time frame and exact structure of the exercise, which will see Embassy Group merging real estate assets spread over 62 million sq ft with listed company Indiabulls Real Estate.

Spokespersons of the two companies confirmed the respective scheduled meetings of their boards.

The proposed amalgamation will see Indiabulls Real Estate exit from real estate business completely. As per the plan, Embassy Group’s real estate assets will be merged with the Mumbai-based company’s 31 million sq ft of assets under development.


The merged entity will become the development arm for Embassy Group, and it will provide a mechanism to seed assets for its Embassy-Blackstone REIT, India’s maiden real estate investment trust, which was listed last year.

Private equity firm Blackstone and HDFC Property Fund’s HIREF International LLC will be the anchor investors in the proposed development platform.

ET had earlier reported that after the merger, Indiabulls Real Estate’s promoter Sameer Gehlaut’s holding in the company will reduce to less than 10%, and Virwani and family will own about 30%, while institutional investors will own around 35% in the amalgamated entity.
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Last month, Indiabulls Real Estate had informed stock exchanges that the merger with Embassy Group had progressed into the final stage, concluding the due-diligence and commercial discussions.

After the merger is complete, Embassy Group’s Virwani and its other promoter entities will become the new promoters of the amalgamated company, Indiabulls Real Estate had said.

The new entity is aiming to solidify its presence as a property development platform with a focus on metro markets including Mumbai, Bengaluru and the National Capital Region.

Indiabulls Real Estate has access to a land bank of 1,900 acres and the 1,424-acre Nashik special economic zone, which will provide further development potential for the merged entity.
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