IVRCL set to raise stake in IVR Prime to 80%

IVRCL set to raise stake in IVR Prime to 80%
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First Published: Mon, Nov 09 2009. 11 57 PM IST
Updated: Mon, Nov 09 2009. 11 57 PM IST
Hyderabad: Hyderabad-headquartered infrastructure firm IVRCL Infrastructures & Projects Ltd is set to increase its holding in its property development subsidiary IVR Prime Urban Developers Ltd to 80.46% from the existing 62.35% following transfer of its BOT (build, operate and transfer) businesses to the subsidiary.
In a bid to leverage the idle networth of Rs1,100 crore of its subsidiary, IVRCL had on 30 October proposed to transfer its BOT projects in water and road sectors worth Rs1,800 crore to the subsidiary and remain focused on EPC (engineering, procurement and construction) activities.
At a board meeting on Monday, IVR Prime approved the valuation report, share swap ratio and fairness reports submitted by various agencies appointed for the purpose. Approving the draft scheme of amalgamation, the board decided to allot 5.94 crore equity shares of Rs10 each to its parent IVRCL.
Following allotment of shares to IVRCL, the paid-equity of IVR Prime will increase to Rs123.6 crore from the existing Rs64.15 crore. This will reduce the promoters’ holding in IVR Prime to 7.61% from the existing 14.66%, the company said in a statement.
As a part of the restructuring, IVRCL proposed to transfer two of its BOT arms – IVR Strategic Resources & Services Ltd and IVRCL Water Infrastructures Ltd, where it owns 100% equity. While the former is executing four road projects, the latter is developing a desalination plant and a sewerage treatment plant.
While announcing the restructuring plan on 30 October, the IVRCL chairman and managing director told the media that the move also helps the company, which was finding it difficult to raise funds for its BOT projects.
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First Published: Mon, Nov 09 2009. 11 57 PM IST