Shares of Equinox India Developments (formerly known as Indiabulls Real Estate), on January 7, surged by 20 per cent to hit the upper circuit limit, following the approval of its merger with Embassy Group by the National Company Law Appellate Tribunal (NCLAT). This merger has been in progress for five years.
Equinox’s stock rose nearly by 20 per cent, reaching ₹143.58 per share on Tuesday’s trading session.
Indiabulls Real Estate Limited (IBREL) rebranded itself as Equinox India Developments last year.
The name change to Equinox India followed an infusion of ₹3,911 crore into the company through a preferential allotment of shares from investors including Bengaluru-based Embassy Group, global asset manager Blackstone Real Estate Fund, UK-based investment firm Baillie Gifford & Co., and others.
Equinox, based in Mumbai, launched its first Embassy-branded project—Embassy One—in Thane, a residential development featuring 186 apartments, each priced at ₹1 crore or more.
About the merger
The merger between the two companies was initially announced in August 2020, with the Competition Commission of India (CCI) granting approval in February 2021. Following this, the Bengaluru bench of the National Company Law Tribunal (NCLT) also gave its approval.
However, the deal faced its first obstacle in March 2023 when the Chandigarh bench of the NCLT halted the merger due to concerns raised by the income tax department. In response, Indiabulls decided to challenge the NCLT Chandigarh ruling at the NCLAT.
After extended deliberations, the NCLAT has now approved the merger, dismissing the concerns raised by the income tax department and other parties. This ruling aims to resolve the issue that has spanned over four years.
The issue has been extensively discussed since then, and this morning, the NCLAT has approved the merger to proceed. The objections raised by the income tax department and other parties have been dismissed.
With this decision, NCLAT aims to resolve a matter that has been ongoing for four years.
As a result of the merger, the Embassy Group will hold a majority stake in the newly formed entity.
However, it is crucial to note that the appellate tribunal’s orders can still be contested in the Supreme Court.
