Indiabulls Real Estate plunges 7% as MD Mehul Johnson resigns

Shares of Indiabulls Real Estate slipped 7 per cent to Rs 56.70 in Tuesday's intra-day trade on the BSE after the company announced resignation of Mehul Johnson as a Managing Director (MD) & Key Managerial Personnel of the company with effect from February 27.

Meanwhile, the board approved appointment of Sachin Chittaranjan Shah as an Additional Director designated as Executive Director, of the company, for a period of 5 years w.e.f. February 27, in place of Mr. Mehul Johnson, Indiabulls Real Estate said in an exchange filing.

Mehul Johnson resigned as managing director on Monday for personal reasons, the company said.

However, to facilitate smooth transition of his erstwhile responsibilities as a Managing Director, at the request of the Board, he will continue as Non-Executive, Non-Independent Director of the company till March 31, 2023.

At 12:25 PM; Indiabulls Real Estate traded 5.6 per cent lower at Rs 57.50, as compared to 0.09 per cent decline in the S&P BSE Sensex. The stock of residential, commercial projects company had hit a 52-week low of Rs 50.80 on February 14.

In the past one month, Indiabulls Real Estate has underperformed the market by falling 15 per cent, as against 0.10 per cent fall in the benchmark index. Further, in the past three months, the stock slipped 32 per cent, as compared to 0.75 per cent gain in the Sensex.

In the October-December quarter (Q3FY23), Indiabulls Real Estate posted a consolidated net loss of Rs 236.77 crore on a lower income. Its net loss stood at Rs 87.04 crore in the year-ago period. The company had posted net profit of Rs 56.71 crore in September quarter (Q2FY23).

Total income fell to Rs 148.47 crore in the third quarter of this fiscal year from Rs 355.59 crore in the corresponding period of the previous year.

Meanwhile, the company said merger with the Embassy was in the final stages of the National Company Law Tribunal (NCLT) review – next hearing in Chandigarh scheduled for tomorrow, March 1, 2023.