Indiabulls Real Estate records loss of Rs 76 cr in second quarter

Indiabulls Real Estate reported a consolidated net loss of Rs 76.14 crore in Q2 FY21 compared with net profit of Rs 301.17 crore in Q2 FY20.

Net sales during the quarter slumped 98.1% year-on-year (YoY) to Rs 20.15 crore.

The company reported a pre-tax loss of Rs 77.82 crore in Q2 September 2020 as against a pre-tax profit of Rs 365.94 crore in Q2 September 2019.

Current tax outgo was Rs 0.69 crore in Q2 FY21 as compared to Rs 0.19 crore in Q2 FY20.

The company stated that affordability of real estate is at a multi-year high with declining interest rates (nearing a 'psychological' low 7% handle), and flat property prices. The firm is now seeing very high demand for completed products, and expects very robust collection for the rest of the year.

Meanwhile, Indiabulls Real Estate said that the proposed scheme of amalgamation of NAM Estates & Embassy One Commercial Property Developments into the company had been filed with SEBI/Stock Exchanges for their approval.

Entities controlled by the Blackstone Group Inc have signed definitive documents for their participation in the merger, it added.

On 18 August 2020, the company said that it entered into a definitive agreement with NAM Estates and Embassy One Commercial Property Developments, both Embassy group entities, to merge their residential and commercial projects across markets.

Following the merger being effected, the resultant listed entity shall be owned 44.9% by Embassy Group, 26.2% by the existing public & institutional shareholders, 9.8% by existing IBREL Promoter Group and 19.1% by BREP & other Embassy institutional investors.

Separately, Indiabulls Real Estate said that it raised Rs 50 crore by allotting secured redeemable non-convertible debentures (NCDs) bearing a coupon rate of 10.50% p.a. on a private placement basis. The interest is payable on maturity and the redemption date of the NCDs is 12 November 2021.

On Thursday, 12 November 2020, Rakesh Jhunjhunwala's Rare Enterprises bought 50 lakh shares, or 1.09% equity, of Indiabulls Real Estate through a bulk deal on the NSE at an average price of Rs 57.73.

Morgan Stanley Asia (Singapore) sold 75.80 lakh shares of the company at an average price of Rs 57.16 on the same day. It held 3.70% stake or 1.67 crore shares of Indiabulls Real Estate as on 30 September 2020.

On Friday, 13 November 2020, Morgan Stanley Asia (Singapore) further sold 47.79 lakh shares of the company at an average price of Rs 60.36 per share on the NSE.

Indiabulls Real Estate is engaged in the development of real estate projects and allied activities.

Shares of the real estate developer spurted 6.07% to 63.80 in the one-hour special Muhurat trading session on the occasion of Diwali on 14 November 2020.

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