Last Updated on Feb 24, 2022 by Ayushi Mishra
Indiabulls Real Estate shares surged 12% to Rs. 115.55 on the NSE on 22 February 2022, Tuesday’s intra-day trade on the strength of large volumes. This happened after the firm stated that the Enforcement Directorate (ED) investigations did not apply to the company and had no influence on the company’s business and operations.
At 11:40 am 22 February 2022, the stock was trading 10.6% higher at Rs. 114, versus a 1.1% fall on the S&P BSE Sensex. The trading volume at the counter increased significantly, with a total of 39 mn. equity shares changing hands on the NSE and BSE.
After the ED searched the premises of Indiabulls Finance Center in Delhi and Mumbai on Monday, the shares of the real estate business fell 15% to Rs. 103. This was in relation to charges of money laundering levelled against the business and its 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 stated in an exchange filing.
Sameer Gehlaut has resigned as non-executive director and chairman of the firm, effective 31 December 2021. Furthermore, Indiabulls Real Estate stated that the departing Promoters have stated that they are not involved in the day-to-day operation of the firm.
The ongoing merger of NAM Estates Private Limited and Embassy One Commercial Property Developments Private Limited, both Embassy group firms, with the company process is on track, and the shareholders of the company approved the plan of merger at an NCLT convened meeting on 12 February 2022.