New Delhi: Shares of Indiabulls Real Estate surged 9 per cent to Rs 112.40 on the BSE in Tuesday’s intra-day trade in an otherwise weak market on the back of heavy volumes after the company clarified that Enforcement Directorate (ED) investigation did not pertain to the company and has no bearing on the business and operations of the company.
At 10:33 am; the stock traded 8 per cent higher at Rs 110.75, as compared to a 1.6 per cent decline on the S&P BSE Sensex. The trading volume at the counter jumped 1.5 times with a combined 28 million equity shares changing hands on the NSE and BSE.
On Monday, the stock of real estate company slipped 15 per cent to Rs 103 after ED raided the premises of Indiabulls Finance Center in Delhi and Mumbai. This was in connection with money laundering allegations made against the firm and promoter Sameer Gehlaut in April 2021.
“We wish to clarify that ED has sought some information from Indiabulls Housing Finance Limited (IHFL) regarding certain of their clients and it is understood that the necessary data has been provided to ED by IHFL and its officials. The said ED investigation did not pertain to Indiabulls Real Estate Limited (the ‘Company’) and has no bearing on the business and operations of the Company,” Indiabulls Real Estate said in an exchange filing.
Sameer Gehlaut has resigned from the office of non-executive director and chairman of the company effective from 31st December 2021. Further, the outgoing Promoters have submitted that they are not involved in the day to day management of the company, Indiabulls Real Estate said.
Ongoing merger of NAM Estates Private Limited and Embassy One Commercial Property Developments Private Limited, both Embassy group entities, with the company process is on track and the shareholders of the company, at NCLT convened meeting held on February 12, 2022, have approved the scheme of merger.