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Embassy Developments, formerly Indiabulls Real Estate, has announced plans to raise up to INR 2,000 crore through Qualified Institutions Placement (QIP) or other permissible methods to support its growth. The company's board has approved an enabling resolution aimed at optimising costs and maintaining conservative financial management. Additionally, the company is set to acquire a 100% stake in Squadron Developers for an enterprise value of INR 455 crore to develop a premium residential project in Bengaluru's Yelahanka. The merger between Embassy Group and Indiabulls Real Estate was recently approved by the National Company Law Appellate Tribunal (NCLAT) after clearing many regulatory hurdles.
Embassy Developments, previously known as Indiabulls Real Estate, is set to raise up to INR 2,000 crore through Qualified Institutions Placement (QIP) or other permissible modes to support the company's expansion. Advertisement
The fundraising may include equity shares, convertible or exchangeable securities, Global Depository Receipts, American Depository Receipts, Foreign Currency Convertible Bonds, and other financial instruments.
The board of the listed company has approved an enabling resolution for this initiative, aiming to ensure cost optimisation and maintain a conservative approach to financial management.
Additionally, the board has sanctioned the acquisition of a 100% stake in Squadron Developers for an enterprise value of INR 455 crore. The acquisition is intended for the development of a 1.27 million sq ft premium residential project on a 10.59-acre land parcel in Bengaluru's Yelahanka locality.
The residential project will be developed at Embassy Hub, Yelahanka, with Squadron Developers Pvt. Ltd. owning 7.49 acres and holding development rights on 3.10 acres under a joint development agreement.
The proposed acquisition will be executed through the purchase of a 100% stake in Squadron Developers Pvt. Ltd. (SDPL) from Embassy Real Estate Developments & Services. The enterprise value has been determined based on equity and project valuation from two independent valuers, with the final price set at a 10% discount to the average of these valuations, as per the company's regulatory filing.
In addition, the company plans to acquire a 9.45-acre land parcel near Embassy Springs for INR 104 crore to develop a 0.22 million sq ft plotted residential project. This land is being purchased from Embassy Property Developments.
Embassy Developments has also announced key leadership appointments, with Jitu Virwani named as Chairman and Aditya Virwani as Managing Director. Other appointments include Rajesh Kaimal as Chief Financial Officer, Shailendra Konanur Subbaraya as Chief Operating Officer - South, and Maria Rajesh as Chief Human Resource Officer. These appointments have taken effect from February 25.
The company's merger with Embassy Group, which had faced an 18-month delay due to regulatory issues, has now been approved by the National Company Law Appellate Tribunal (NCLAT). The tribunal overturned an earlier ruling by the National Company Law Tribunal (NCLT), clearing the way for the merger. It noted that all necessary regulatory approvals had been obtained, with strong backing from shareholders and creditors, facilitating the formation of a nationwide real estate entity.
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