Indiabulls Real Estate promoters sell 12% stake to Embassy group

“Our Group has predominantly been a financial services group. Real estate was a latter-day entry. So we want to focus on the financial services part and for us evolution into banking is the natural frontier and it’s all in the public domain, we have kick-started the process of doing a voluntary amalgamation with Lakshmi Vilas Bank (LVB); the idea is to create a world-class bank,” said Mittal.

Embassy group plans to buy up to 28 percent stake in Indiabulls Real Estate eventually, Jitendra Virwani, chairman and managing director, Embassy group, told CNBC-TV18, adding that the company will try to synergise both businesses between Embassy and Indiabulls and take the company forward.

Virwani added that the Indiabulls Real Estate deal will be funded through the company's own funds.

"We were at the right time in the right place. As far as Indiabulls is concerned, they needed to exit realty business and I think there wasn’t anybody who would turn things around as fast as we could turn the things around. It synergises the business we have, it gives us a great platform in Bombay and in the NCR area where we have been trying to make in-roads for a long time," said Virwani.