Embassy group says no plan to raise stake in Indiabulls Real Estate

Bengaluru-based Embassy group has no immediate plans to increase its stake in Indiabulls Real Estate Ltd from the current nearly 14 per cent, the company's CMD Jitu Virwani said.

"There is no plan right now," Virwani told PTI when asked about the company's plan to raise stake in Indiabulls Real Estate.

The company would remain invested in Indiabull Real Estate, he added.

At the end of the June quarter, Embassy Property Development Pvt Ltd held 13.89 per cent stake in Indiabulls Real Estate.

In June, Indiabulls Real Estate promoters sold 14 per cent stake through open market transactions to Embassy Group for Rs 950 crore, as part of its strategy to focus on financial services and exit from realty business.

With this deal, Bengaluru-based developer Embassy group sought to enter into Mumbai and Delhi-NCR markets, the two biggest property markets in the country.

On Wednesday, Indiabulls group faced setback when the RBI rejected the proposed merger of Indiabulls Housing Finance with troubled private sector lender Lakshmi Vilas Bank.

Speculations were rife about the fate of the merger, announced in April this year, after the Reserve Bank of India (RBI) imposed restrictions on Lakshmi Vilas Bank due to its weak financial health.

To get the banking licence, Indiabulls group have been selling various completed commercial properties to the US-based private equity firm Blackstone.