Oberoi Realty slips over 3% after receiving approval to acquire Nirmal Lifestyle Realty

Oberoi Realty informed that the NCLT has approved the resolution plan submitted by the company in relation to the Corporate Insolvency Resolution Process (CIRP) of NLRPL.

Nirmal Lifestyle Realty was incorporated on November 14, 1995, and has its registered office in Mumbai, Maharashtra. The company holds development rights on land measuring approximately 20,262.40 square meters. The land is located on L.B.S. Road, Mulund West, Mumbai.

Oberoi Realty stated that NLRPL’s land is contiguous to lands owned by the company where Oberoi Realty developed its residential project, Eternia.

The company’s resolution plan has provided for the payment of ₹273 crore to various creditors in a full and final settlement along with the CIRP costs incurred up to the effective date. The effective date will be a date not earlier than 90 days from the NCLT approval date. On the effective date, Oberoi Realty will subscribe to 100% equity share capital of NLRPL of ₹1 lakh, resulting in NLRPL becoming a wholly-owned subsidiary of Oberoi Realty.

Further, an Interim Committee comprising one nominee of the company, one nominee of the Committee of Creditors, and the resolution professional will supervise and execute the resolution plan. The Interim Committee will also conduct the business of NLRPL.

Last month, Oberoi Realty informed that the company has entered into a development agreement for the development and redevelopment of approximately 2,576 square meters of land, located at Carter Road, Bandra West, Mumbai. The project is expected to generate a free sale component of around 40,000 square feet.

Shares of the company have risen by nearly 43% since the beginning of the year. The stock has gained over 85% in the past year.