 "Embassy likely to mop up additional 14% stake in Indiabulls Real Estate")
Commercial real estate major Embassy Property Development is expected to mop up an additional 14 per cent stake in Indiabulls Real Estate in a week. According to sources, Embassy will buy out 14 per cent stake in Indiabulls Real Estate from its promoters’ Sameer Gehlaut and his group companies.
“The deal is likely to conclude in a few days,” said the source. This would be the second round of stake acquisition from Indiabulls Real Estate’s promoters, following the first tranche, which concluded on June 7.
Similar to the previous round of stake purchase, sources said the second tranche would also take place at the then prevailing market price of Indiabulls Real Estate and would be through bulk deals on stock exchange. After this round of stake purchase, Embassy will make an open offer to the shareholders of Indiabulls Real Estate. It would entail regulatory approvals from the Securities Exchange Board of India and Competition Commission of India.
Prior to the June 7 transaction, Gehlaut held about 39 per cent of shares in Indiabulls Real Estate. With the second round of share sale to Embassy, Gehlaut’s stake in Indiabulls Real Estate would reduce to less than 10 per cent.
Sources, however, said Gehlaut would cease to be the promoter, he might continue to hold 10 per cent stake in the firm. Filing of Indiabulls Real Estate with stock exchanges in June indicated that promoters’ stake reduction in the company is in line with their strategy to focus on financial services business in the long run. Gehlaut is also the promoter of Indiabulls Housing Finance, which is currently looking to merge itself with Lakshmi Vilas Bank.
Indiabulls Real Estate has 23.5 million sq ft of residential properties and 2.4 million sq ft of commercial space under development.
Bengaluru-based Embassy is currently building 10,000 residential units across six projects and has built 12 million sq ft of housing projects so far. It has developed 34 million sq ft of office space in a joint venture with Blackstone.
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