Embassy Group subsidiaries to merge with Indiabulls

Indiabulls property real estate

Shardul Amarchand Mangaldas & Co (SAM) advised the Embassy Group on the proposed merger of the assets of two of its subsidiaries – NAM Estates and Embassy One Commercial Property Developments – with Indiabulls Real Estate.

SAM advised on all regulatory aspects of the deal, which included approvals from the Competition Commission of India. The merger agreement was signed on 18 August.

J Sagar Associates (JSA) advised Bombay Stock Exchange and National Stock Exchange-listed Indiabulls Real Estate.

JSA partner Lalit Kumar, who advised on the deal, told India Business Law Journal that the proposed merger “will create one of India’s leading listed real estate development platforms”. JSA’s team also included senior associate Amandeep Singh Virk.

SAM’s team was led by partner Mithun Thanks and included principal associate Anjali Menon, senior associate Akansha Singh and associates Tanya Singh and Shraddha Suryavanshi. Partner Anirudh Das and associate Alind Chopra advised on the composite scheme of amalgamation, while the firm’s Mumbai managing partner Akshay Chudasama provided strategic input.

SAM’s team also included partner Gauri Chhabra, senior associate Tripti Malhotra, and associates Nicky Collins, Sagarika Parab and Eesha Sheth (competition law), partner Nikhil Naredi and senior associate Devesh Khara (capital markets), and partner Yogesh Chande (Securities and Exchange Board of India regulation).

The merger is to be achieved through a cashless scheme of amalgamation and is expected to be completed by the second quarter of the 2022 financial year. Certain Embassy Group assets that are controlled by The Blackstone Group have submitted a non-binding letter of intent for participation in the proposed merger.

The merged entity will be 44.9% owned by the Embassy Group, and is to be renamed Embassy Developments. In a stock exchange filing, Indiabulls Real Estate said the merged entity “will have a balanced mix of commercial and residential assets, which should provide a natural hedge against cyclicality and shall benefit from the new promoter”.