Shares of Indiabulls Real Estate fell 7% to Rs 56.70 in intraday trade on the BSE on Tuesday after the company announced the resignation of Mehul Johnson as managing director (MD) and key management of the company, effective February 27.

Meanwhile, the board approved the appointment of Sachin Chittaranjan Shah as an additional director designated as executive director of the company for a term of five years from February 27, Indiabulls Real Estate said in a bourse filing. He will replace Mr Mehul Johnson.

Mehul Johnson resigned as managing director on Monday, citing personal reasons, the company said.

However, to smooth the transition of his responsibilities as Managing Director, at the request of the Board of Directors, he will continue to serve as a non-executive, non-independent director of the company until March 31, 2023.

Indiabulls Real Estate traded 5.6% lower at Rs 57.50 at 12:25 pm, while the S&P BSE Sensex was down 0.09%. Shares of the residential and commercial projects company hit a 52-week low of Rs 50.80 on February 14.

Indiabulls Real Estate has underperformed the market over the past month, falling 15% against a 0.1% decline in the benchmark index. Moreover, the stock has lost 32% over the past three months, while the Sensex has gained 0.75%.

Indiabulls Real Estate posted a consolidated net loss of Rs 236.77 crore in the October-December quarter (Q3FY23) on lower revenue. Its net loss for the same period last year was Rs 87.04 crore. The company posted a net profit of Rs 56.71 crore in the September quarter (Q2FY23).

Total revenue for the third quarter of the current fiscal year fell to Rs 148.47 crore from Rs 355.59 crore in the same period last year.

Meanwhile, the company said the merger with the embassy is in the final stages of review by the National Company Law Tribunal (NCLT) – with the next hearing in Chandigarh scheduled for tomorrow, March 1, 2023.