New Delhi: Indiabulls Real Estate promoters have sold 14 per cent stake through open market transactions to Embassy Group for Rs 950 crore, as part of the group’s strategy to focus on financial services and exit from realty business. Promoters have around 39 per cent stake in Indiabulls Real Estate, of which 14 per cent, representing over 6.3 crore shares, have been offloaded through bulk deal on Friday. Indiabulls Group is looking to exit the real estate business so that it can get regulatory approvals for the proposed merger of Indiabulls Housing Finance with the Lakshmi Vilas Bank. Also Read – SC declines Oil Min request to stay sharing of documentsWith this deal, Bengaluru-based developer Embassy group will get entry into Mumbai and Delhi-NCR, the two biggest property markets in the country. According to the bulk deal data available on the BSE, promoters entities have sold 6,30,95,240 shares to privately-held Embassy Property Developments Pvt Ltd at Rs 150.45 apiece, aggregating to nearly Rs 950 crore. At this price, the company has been valued at nearly Rs 6,800 crore, higher than the current market cap of nearly Rs 5,800 crore. The share price of Indiabulls Real Estate fell 2.58 per cent on the BSE to close at Rs 128.20 per share. Also Read – World suffering ‘synchronized slowdown’, says new IMF chiefAccording to sources, Embassy Group may buy another 14 per cent in Indiabulls Real Estate, taking its total stake to 28 per cent and triggering an open offer. Indiabulls promoters may retain some stake in the company but will lose management control. Whether Embassy Group is buying stake in Indiabulls Real Estate directly or in partnership with global investment firm Blackstone could not be ascertained. On late Thursday, Indiabulls Real Estate informed BSE that the “promoters intend to dispose-of up to 14 per cent of the fully paid-up share capital of the company (out of the aggregate 38.72 per cent fully paid up share capital of the Company, currently held by them) to third party investors”. The stake sale is in line with the promoters’ strategy to focus on financial services in the long run, it added. Recently, Embassy Office Parks, the joint venture firm with global investment firm Blackstone, launched India’s first Real Estate Investment Trust (REIT) to raise Rs 4,750 crore. The group, which commenced its operations in 1993, is led by CMD Jitu Virwani. The group has developed 54 plus million sq ft of commercial, residential, retail, hospitality and industrial warehouse spaces and holds an extensive land bank of over 1,000 acre across the country. Indiabulls Real Estate has been selling its commercial assets to Blackstone in last few years. In December 2018, it sold 50 per cent stake in two office assets in Gurgaon to Blackstone for Rs 464 crore.