Indiabulls Real Estate's stock took a heavy knock after NCLT, Chandigarh, withheld the merger plan of NAM Estates & Embassy One into the company. The stock tumbled as much as 20 per cent to close at Rs 55.40 on the BSE, post the development.

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The share fell 17.65 per cent in last five days, while the slide in the last month is 0.72 per cent. The share is down 27.85 per cent in the last one year. 

In a press note, Indiabulls said today (May 9, 2023), "Indiabulls Real Estate Limited (“IBREL”) regrets to inform its shareholders and the public that the sanction to the merger of NAM Estates Private Limited (“NAM Estates”) and Embassy One Commercial Property Developments Private Limited (“Embassy One”) into IBREL has been withheld by the Hon’ble National Company Law Tribunal (“NCLT”), Chandigarh Bench." 

The note further reads, "It is pertinent to note that the merger already stands sanctioned by the Hon’ble NCLT, Bengaluru Bench, which has jurisdiction over NAM Estates and Embassy One, on April 22nd 2022. However, the Hon’ble NCLT, Chandigarh Bench, which has jurisdiction over IBREL, had earlier raised certain concerns based on the objections cited by Income Tax department to the merger." 

IBREL says it strongly believes that these objections and concerns were unfounded, unjustified and do not impact the merger in a significant manner and had accordingly addressed the same before the NCLT.

It said that it would await the detailed order to further evaluate the next steps and would explore all options, including filing an appeal against the order of the Hon’ble NCLT, Chandigarh Bench, before the Hon’ble National Company Law Appellate Tribunal (“NCLAT”) at the earliest.