Bengaluru-based property developer Embassy Group on Thursday said it will not increase its stake in Indiabulls beyond the 14 percent it took from promoters earlier this year.

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In an interview to CNBC-TV18, Embassy Group chairman Jitu Virwani said, “We will remain as investors in Indiabulls and it's a good company. Sameer Gehlaut is a great guy and the company is moving towards being debt-free."

Virwani's comments come a day after Lakshmi Vilas Bank said it has not received the Reserve Bank of India (RBI) approval for its merger into Indiabulls Housing Finance.

In June this year, Embassy Property Development had bought 14 percent of Indiabulls Real Estate at Rs 150.45 apiece or Rs 949.27 crore in total.

"It is unfortunate that they didn't get their banking license, it would have helped their financial business,” Virwani said, “We are not looking at additional 14 percent. Will remain at the 14 percent we got.”

Asked about the share buyback that Indiabulls Real Estate is looking at, Virwani said it is likely because of the cash surplus.

He also said it would be a good option for Blackstone to put the office assets it has acquired from Indiabulls into the recently launched REIT.

"It would be a good opportunity for the REIT. But we have not discussed that yet," he added.

First Published:Oct 10, 2019 3:57 PM IST