Indiabulls Real Estate shares hits 20% lower circuit as merger plans faces delays; check details
Indiabulls Real Estate Share Price: According to analysts the stock has been under tremondous pressure and huge volumes are as well seen in this selling.
PremiumIndiabulls Real Estate Ltd share price hits the lower circuit limit of 20% during Tuesday's trading session as merger plans of Nam Estates and Embassy One into the company has faced delays.
The company expressed regret in an exchange filing for having to inform the public and its shareholders that the Hon'ble National Company Law Tribunal (NCLT), Chandigarh Bench had refused to sanction the merger of NAM Estates Private Limited (NAM Estates) and Embassy One Commercial Property Developments Private Limited (Embassy One) into Indiabulls Real Estate Ltd (IBREL).
On April 22, the NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, approved the merger. But the NCLT, Chandigarh Bench, which has jurisdiction over the company, had earlier voiced some worries based on the criticisms of the merger put out by the Income Tax department.
According to the exchange filing, the company had formally responded to these concerns and objections before NCLT and believes that it will have no material bearing on the merger.
“It is pertinent to note that the merger has already received overwhelming support from 99.9987% of its shareholders who voted on the same and has also received approval from other regulators. IBREL’s board shall be meeting over the next day to chalk out its plan and strategy to move forward and shall communicate the same to all its stakeholders," said the company in its exchange filing.
In January 2020, Indiabulls Real Estate first disclosed the plan to merge with the members of the Embassy Group. NAM Estates and Embassy One Commercial Property Developments, two companies of the Embassy Group, will exchange shares with IBREL as part of the merger's cashless structure. The joined company will be known as Embassy Developments. The merging entity's promoter will be Embassy Group.
On Tuesday's trading session, the stock opened at 68.95 per share on NSE. The stock hit a intraday high of ₹68.95 and low of ₹55.40 on the NSE. Since, today's early trade, the stock so far has lost about 19.65%.
According to trendlyne data, the stock has fallen 41.38% from 52-week high of ₹94.5 recorded on September 06, 2022.
The stock price fell 26.8% and underperformed its sector by 42.7% in the past year.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock is under tremendous pressure, and huge volumes are as well seen in this selling , next support is at 51, traders should avoid trying to catch falling knife. Any bounce towards 59 is likely to get sold into.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
