Indiabulls Real Estate Ltd.'s (IBREL) shares declined more than 6 percent on Tuesday following a top leadership change after Mehul Johnson resigned as Managing Director with effect from February 27 due to personal reasons and existing commitments.
Sachin Chittaranjan Shah, who is the President of the company, was appointed as Additional Director and designated as Executive Director for a period of five years in place of Johnson.
The real estate major also announced the appointment of three independent directors – Shyamm Mariwala, Javed Tapia, and Tarana Lalwani – for a period of three years.
The recent appointments indicate that more control of the company is in the hands of the Embassy Group with which the company’s merger is in the final stage of the National Company Law Tribunal (NCLT) review.
The next hearing on the merger before the NCLT Chandigarh bench is scheduled on March 1.
According to the investor presentation by the company, the proposed scheme for the amalgamation of NAM Estates and Embassy One Commercial Property Developments into IBREL is underway. NCLT Bengaluru has concluded the hearing on the merger scheme.
Embassy Group in March 2020 entered into a deal to merge its select residential and commercial projects with IBREL through a cashless scheme of merger. Embassy Group will become the promoter of the merged entity.
Indiabulls Real Estate’s net debt as of December 31, 2022, was nil and it had a cash surplus of Rs 580 crore as against a cash surplus of Rs 136 crore in the September quarter.
Shares of Indiabulls Real Estate Ltd. ended 5.50 percent lower at Rs 57.55 on Tuesday.
