Zandu Realty soars 20%, Emami Infra up 5% on merger nod

Zandu Realty has rallied 20% at Rs 1,491 and Emami Infrastructure up 5% at Rs 155 on BSE

Shares of Emami Group Companies - Zandu Realty (up 20% at Rs 1,491) and Emami Infrastructure (up 5% at Rs 155) - are locked in their respective upper limit of circuit filter after their boards approved the scheme of amalgamation.

The board of directors of the two companies met on Saturday to propose the amalgamation where Zandu Realty (ZRL) shareholders will get 7 shares of Emami Infrastructure (EIL) of face value of Rs 2 for every share of face value of Rs 100 held on the record date.

The merger scheme is subject to approval by shareholders, market regulator Sebi and the National Company Law Tribunal, among others.

Both EIL and ZRL are engaged in real estate activities of construction and development of residential, commercial or retail premises.

“The mammoth and ambitious goal of Indian Government of providing affordable housing to all its citizen by 2022 coupled with overall growth in economy, increased foreign direct investment (FDI) inflows in construction industry, lower interest rates and path-breaking regulatory developments such as RERA and GST, will provide much needed impetus to the real estate industry in India. Large sized efficiently managed companies with wider territorial presence will spearhead the real estate growth in the counter,” the company said in a release.