India bulls Real Estate, one of the leading real estate companies in India, has cut down the cost of net debt to ₹ 464 crores, i.e., 54% in the second quarter of 2022.
In the current investor presentations by Indiabulls, it is said that the company’s merger with the Embassy group is in its last review stage by National Company Law Tribunal (NCLT). In the same presentation for the merger with Embassy Group, Indiabulls real estate also mentioned that the cost of net debt has come down to ₹ 464 crores in the last days of June compared to the first quarter, which stood at ₹ 1,005 crores as of March 31, 2022. Indiabull’s real estate share’s gross debt also fell to ₹ 739 crores from ₹ 1,310 crores.
In April, Indiabull’s real estate share price raised an amount of ₹ 865 crores. The funds were raised by allotting the shares to the inventors belonging to institutions of debt reduction and acquisition of lands. In the first quarter of 2022, the price of operational shares of Indiabulls real estate fell to ₹ 297 crores from ₹ 350 crores in the first quarter of 2021.
In the year 2020, Embassy Group entered the frame and decided to merge a certain number of its projects with Indiabulls Real Estate with a cashless method of mingling. In the current period, the group is set to become the promoters of the amalgamation. The final stage of the merger by NCLT will be held on September 8, 2022. The mingling of both Embassy One Commercial Property Developments and NAM states with Indiabulls real estate share is underway as per the presentation.
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As of February 2021, the merger of Embassy Group (Embassy One Commercial Property Developments and NAM states) got the approval of the Competition Commission of India (CCI) Indiabulls Real Estate Limited.
The Embassy Group is set to get a 14% stake in Indiabulls Real Estate shares and will increase to 45% after the merger. Post-amalgamation, both the companies will have 80.8 million square feet of design and put in motion potential for development. The merged entity is set to work on 30 projects as of now.
Under the amalgamation terms, the IB real estate share price is ₹ 92.5 per share of the company.
Currently, the land owned by IB real estate accounts for 3,280 acres near the metropolitan regions of India. These regions include Mumbai Metropolitan Region (MMR), Vadodara, Delhi-NCR, Vizag, Indore, and Jodhpur.
Apart from the merger, IN real estate is expecting a total income of ₹ 8,566 crores by selling all its completed and upcoming real estate projects. The company, in recent times, has had an unsold project inventory of ₹ 12,736 crores and the amount received from customers against the units is ₹ 3,030 crores, with the total development cost summing up to ₹ 7 201 crores.
In the second week of August 2022, the net loss of IB real estate was estimated at ₹ 51.95 crores for the second quarter ending in June. The company’s net profit for the same period the previous year was recorded at ₹ 4.76 crores. The company’s total income fell to ₹ 164.18 crores as compared to the previous year’s earnings for the same period of April to June, which was recorded at ₹ 532.03 crores.
