Embassy Developments, earlier known as Indiabulls Real Estate, is planning to raise up to Rs 2,000 crore through Qualified Institutions Placement (QIP) or other permissible modes to support the company’s growth.
The fundraising may involve equity shares, convertible or exchangeable securities, Global Depository Receipts, American Depository Receipts, Foreign Currency Convertible Bonds, and other instruments.
The listed company’s board has approved an enabling resolution for the same in a bid to ensure cost optimization and maintain conservative financial management.
It has also approved the plan to acquire a 100% stake in Squadron Developers for enterprise value of Rs 455 crore to develop a 1.27 million sq ft premium residential project on a 10.59-acre parcel in Bengaluru’s Yelahanka locality.
The housing project is planned on this land parcel at Embassy Hub, Yelahanka, with Squadron Developers Pvt. Ltd. owning 7.49 acres and development rights on 3.10 acres through a joint development agreement.
The proposed acquisition will be through purchase of 100% stake in SDPL by the company from Embassy Real Estate Developments & Services for an enterprise value, arrived basis equity and project valuation from two independent valuers, at an 10% discount to average of these two independent valuations, the company said in a regulatory filing.
Additionally, it will purchase a 9.45-acre land parcel near Embassy Springs for a 0.22 million sq ft plotted development project. The company is acquiring the said land parcel from Embassy Property Developments for Rs 104 crore.
The company has appointed Jitu Virwani as its Chairman and Aditya Virwani as the Managing Director, while making a few more CXO level appointments. It has appointed Rajesh Kaimal as Chief Financial Officer, Shailendra Konanur Subbaraya, as Chief Operating Officer –South and Maria Rajesh, as Chief Human Resource Officer with effect from February 25.
Last month, the National Company Law Appellate Tribunal (NCLAT) cleared the merger of Embassy Group and Indiabulls Real Estate, reversing an earlier National Company Law Tribunal (NCLT) ruling that had delayed the process for 18 months.
The NCLAT noted that the merger had secured all required regulatory approvals and strong backing from shareholders and creditors, paving the way for a nationwide real estate entity.
