Indiabulls Real Estate has cut its net debt by 54 per cent to Rs 464 crore during the three months ended June compared with the March quarter.

Besides, the merger with the Embassy Group is in the final stage of the National Company Law Tribunal (NCLT) review, according to an investor presentation by Indiabulls Real Estate Ltd (IBREL).

In the investor presentation, IBREL said its net debt stood at Rs 464 crore at the end of the June quarter, against Rs 1,005 crore as of March 31. Gross debt fell to Rs 739 crore from Rs 1,310 crore.

In April, IBREL had raised Rs 865 crore by issuing shares to institutional investors mainly for land acquisition and debt reduction.

On the operational front, the company’s sales bookings fell to Rs 297 crore in the first quarter of this fiscal year from Rs 350 crore in the corresponding period of the previous year.

In August 2020, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cashless scheme of amalgamation.

Embassy Group will become the promoters of the merged entity.

“Merger with Embassy in the final stages of NCLT review – next hearing in Chandigarh is scheduled on September 8,” IBREL said in the presentation.

The proposed scheme for amalgamation of NAM Estates and Embassy One Commercial Property Developments into the IBREL is underway, it added.

In February 2021, the Competition Commission of India (CCI) approved the proposed merger of Embassy Group firms — NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd — with IBREL.

Embassy Group has around a 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, IBREL’s shares are valued at Rs 92.5 per share.