Indiabulls Real Estate posts Rs 5.6 crore profit in Q2; Sameer Gehlaut to step down as Chairman

Indiabulls Real Estate Ltd (IBREL) on Thursday reported a consolidated net profit of Rs 5.64 crore for the quarter ended September and announced the resignation of Sameer Gehlaut as the non-executive director and chairman of the company with effect from December 31. Mumbai-based IBREL said Gehlaut will now focus on Dhani Services Ltd. The resignation of Gehlaut comes amid the proposed merger of IBREL projects with the Bengaluru-based Embassy Group. After the conclusion of the merger process, Embassy Group will become the main promoter after the completion of amalgamation process. In a regulatory filing, IBREL reported a consolidated net profit of Rs 5.64 crore for the quarter ended September. The company had posted a net loss of Rs 76 crore in the year-ago period. Total income in the second quarter of this fiscal rose to Rs 381.24 crore from Rs 50.70 crore in the corresponding period of the previous year. IBREL said Gehlaut has informed the board that he would resign as the chairman by the end of this year. "...to focus on business of providing technology-enabled transaction finance and primary healthcare services by Dhani Services Ltd, of which Sameer Gehlaut is the founder promoter, Chairman & CEO, at the aforesaid meeting Gehlaut informed that he would be leaving the office of non-executive director & chairman of the company by the end of the year," it said. Accordingly, Gehlaut submitted his resignation effective from December 31, 2021. On the proposed merger of its assets with the Bengaluru-based realty firm Embassy Group, IBREL said it has got regulatory approvals from Competition Commission of India (CCI), National Stock Exchange of India (NSE), BSE Limited (BSE) and the Securities and Exchange Board of India (SEBI). The company has filed the requisite joint application with jurisdictional bench of NCLT, for its approval to the scheme of merger. "The application for approval of merger with NCLT is listed in the current quarter," it said. Last year, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation. Embassy Group will become the promoter of the merged entity. Embassy Group has around 14 per cent stake in IBREL and the same will increase to 45 per cent after the merger of assets of these two companies. Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects. Under the terms of the agreement, the IBREL's shares are being valued at Rs 92.5 per share.