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Merger b/w #IBREL and assets of #Embassy – An overnight turnaround or a long term value play? (For educational purpose)

Expected cash flows over next 5-6 yrs:

As on Mar-21, IBREL’s ~21msf of RTMI (6msf) and U/C (16msf) projects are expected to generate ~INR6750cr of net surplus
~8msf of planned projects will generate ~2600cr of surplus. Total ~INR9350cr.

Of which ~INR5600cr or 60% from MMR projects, 33% or ~INR3000cr from Gurugram projects & rest ~INR750cr from Tier2&3 towns

(Net surplus = Sales receivables + Inventory – Pending construction costs)
Ex mktg & admin costs and taxes, net operating cash flows will amount to ~INR4700cr to be generated over next 5-6yrs

Similarly, Embassy has ~21msf of ongoing (~10msf) and upcoming projects (~11msf) which will generate ~INR5500cr of net surplus (~INR6500cr as on Aug-20)
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