The group will remain invested in Indiabulls Real Estate as it is a good company, CEO Jitendra Virwani says.
Indiabulls Real Estate recently said its board of directors would consider a share buyback proposal on October 11, but the Embassy Group, a stake holder, has said it has no plans to increase its shareholding in the realty company.
"The share buyback by Indiabulls Real Estate is likely because of cash surplus in the company, but we are not looking at buying additional stake in company," Bengaluru-based Jitendra Virwani, Chairman and Managing Director of Embassy Group, told CNBC-TV18.
Embassy Property Developments Private Limited held 13.88 percent stake in the real estate company as of June 2019.
The group would remain an investor in Indiabulls Real Estate as it was a good company, Virwani said. Indiabulls Group founder and Chairman Sameer Gehlaut was a great guy and company was moving towards being debt free, he added.
Indiabulls Real Estate had in September divested its remaining stake in joint venture companies Yashita Buildcon and Ashkit Properties (both owning assets in Gurgaon’s Udyog Vihar) and its certain subsidiaries in Indiabulls Properties and Indiabulls Real Estate (both owning assets at Lower Parel, Mumbai) to the entities controlled by the Blackstone Group Inc (Blackstone).
"The divestment of these assets got concluded at an aggregate equity value of approximately Rs 2,717 crore. This has generated significant financial resources for the company towards achieving its goal of zero net debt in current financial year 2019-20," the company said a BSE filing on September 25.
The company along with the subsidiaries was also in the process of finalising a definite agreements with Blackstone for proposed divestment of stake in commercial assets/development at Worli Mumbai, rights/stake in KG Marg New Delhi and Sector 104 & Sector 106 Gurgaon, it said.
The Reserve Bank of India, on October 9, rejected the merger of Indiabulls Housing Finance Company and Indiabulls Commercial Credit with Lakshmi Vilas Bank."It is unfortunate that Indiabulls Group did not get a banking licence. Banking licence for Indiabulls Group would have helped its financial business," Embassy Group said.
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