The Shares of Indiabulls real estate Ltd opened at Rs 68.50 on Tuesday’s trading session, declining by 20 percent and ending at Rs 55.40. One of the probable reasons for the stock prices to hit a lower circuit today is the recent announcement of the company regarding the delay in the merger of NAM Estates and Embassy One which has been withheld by the National Company Law Tribunal (NCLT), Chandigarh Bench.
It is vital to note that on April 22, 2022, the Hon’ble NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, allowed the merger. However, the Hon. NCLT, Chandigarh Bench, which has jurisdiction over IBREL, had previously expressed some worries based on criticisms made by the Income Tax department against the merger.
The merger has already received support from 99.99 percent of its shareholders who voted on the same and has also received approval from other regulators. The company board shall be meeting over the next few days to chalk out its plan and strategy to move forward.
Indiabulls Real Estate(IBREL) is India’s third-largest property company. It has various development projects in the residential, commercial, hotels, malls, and special economic zone (SEZ) segments. The business mainly focuses on Indian metro cities.
On a last year-to-date basis, the stock is down 33 percent ranging from Rs 76.50 to the current price level. In the last three years, the stock has gained around 15.18 percent ranging from Rs 48.10 to the current price level.
The company is set to release its Q4 in the upcoming weeks. Having a quick walkthrough of the financials of the previous quarter, their operating revenues reduced from Rs 194 crores in Q2 to Rs 133 crores in Q3. Similarly, the net profits of the company, during the same period, decreased from Rs 57 crores to a loss of Rs 237 crores in Q3.
Having a YoY comparison of the metrics, the revenues significantly reduced from Rs 1,521 crores during FY20-21 to Rs 1,445 crores in FY 21-22. The PAT numbers have declined within the timeframe mentioned from Rs 5 crores to a loss of Rs 137 crores.
According to the latest data pertaining to the shareholding pattern, the promoter holding stands at zero. The public holds a 77.10 percent stake, and Foreign Institutional Investors (FIIs) have a 21.43 percent stake in the company for FY 22-23.
Written by Omkar
