Era calls off merger

Era Group, the New Delhi-based infrastructure, real estate, power and construction equipment player, has cancelled plans to combine its realty arm with its entertainment and hospitality business due to the slowdown.

Last month, the group withdrew its application to the Bombay Stock Exchange to merge Era Landmarks with the listed Era E-Zone, said H S Bharana, the group’s chairman and managing director.

Era Group’s other firms are Era Infra Engineering, Era Power and Era Building Systems. Era Group, with projects worth Rs 5,000 crore, was reportedly planning to create three verticals -- construction and infrastructure (including power), real estate, and construction equipment. “We had planned to merge E-Zone with Era Landmarks but given the condition of the realty sector, we decided to go against it,” Bharana said.

Bharana added that Era Landmarks was doing well and it made more sense in the current scenario to keep the two firms separate. Era E-Zone has opened three multiplexes with 12 screens in Ajmer, Meerut and Jaipur in the last three months. Era Landmarks has 15 commercial and residential projects spread across tier-II and III towns, of which only the mall in Meerut is complete.

Bharana said, “Though we have invested only in prime locations in these towns, we are not focusing on real estate.” The group would lay stress on infrastructure in the coming months, Bharana added.

Moreover, no decision has been taken yet on the proposed merger of Era Power with Era Infra Engineering, the group’s flagship company, Bharana said.

The infrastructure firm is into roads and highways, railways and aviation, among others, and contributes two-third to the group’s topline.