Hyderabad: IVRCL Assets and Holdings Ltd, a unit of IVRCL Infrastructures and Projects Ltd, is set to dilute 12-15% of its equity in 2-3 months to raise Rs1,000 crore to fund some of its new projects.
The firm wants to tap private equity (PE) funds and qualified institutional placements (QIPs).
“We have secured some Rs5,000 crore of road BOT (build, operate and transfer) projects during the current fiscal year itself and we need equity funds to invest in these special purpose vehicles (SPVs),” group chief financial officer R. Balarami Reddy said on Thursday.
CNBC TV 18 first reported the news earlier in the day.
Couple of PE firms are already in talks with the company to pick up stake both at the holding company and SPV levels, group chairman Sudhir Reddy said.
“How much equity dilution will take place for raising Rs 1,000 crore depends on the market price. With the toll revenue flowing in, the valuations will go up,” he said. “It will be some 12-15% based on the valuation.”
On Thursday, shares of IVRCL Assets ended nearly flat at Rs126.15 on the Bombay Stock
Exchange, on a day the benchmark Sensex index fell 1.08% to 17,509.33 points.
The equity dilution would also help IVRCL Assets meet the new norms on a minimum public shareholding of 25% in listed companies. Public holding in the company now is about 18%.
Overall, IVRCL Assets has about Rs9,000 crore of road BOT projects, for which debt was arranged from banks and institutions, leaving the equity portion to be firmed up. “We would need some Rs1,300 crore of equity funds in these road projects over the next 2-3 years,” said Sudhir Reddy.
Balarami Reddy said IVRCL Assets recently got the approval of its shareholders for raising Rs1,000 crore through QIPs or private equity firms. “The balance equity funds requirement of some Rs300 crore, out of total equity funds requirement of Rs1,300 crore for BOT projects, may be met through sale of land assets if needed,” he said.
The company has a land bank of about 3,300 acres across the country.
“We expect some Rs1,000 crore of revenue during the current fiscal (year), out of which some Rs350 crore should come from toll collections and the balance from construction operations,” Balarami Reddy said.
HSIL to expand in Europe and India
India’s largest manufacturer of bathroom fixtures and sanitaryware, Hindustan Sanitaryware and Industries Ltd (HSIL), plans to invest Rs130 crore to expand capacity and acquire small domestic and European brands to boost revenues from Rs801 crore in fiscal 2010 to Rs2,500 crore by 2015.
The company, which has two plants with a combined capacity of 2.8 million units, recently bought the UK’s Barwood Products in an all-cash deal for £1 million . and Havells India Ltd’s Crabtree band of faucets for an undisclosed sum.
CLB reserves order on Satyam plea
New Delhi: The Company Law Board today reserved its order on the plea of the scam-hit Satyam (now Mahindra Satyam) seeking time till 30 September to file its financial reports from 2008 to 2010.
This comes after the government, during the proceedings, submitted that it can consider the plea ”in lieu of the extraordinary circumstances” mentioned by the firm. Following this, CLB chairman Justice DR Deshmukh reserved his order.
Satyam has to submit various documents and annual returns required by the statutory authorities.
Earlier, on 15 June, the CLB had directed the corporate affairs ministry to give its reply within 15 days on the plea of Satyam seeking time. Satyam had moved the CLB in the first week of June seeking time till September 30 to file its financial statements.
Satyam had pleaded that since the CBI probe into the Rs10,000-crore accounting scam is not over yet, the company has only limited access to vital documents to prepare financial reports. Since the scam came to light early January 2009, the CBI and SFIO seized all the documents of the company.
It further submitted that CBI is granting only limited access to the documents and expressed inability to furnish annual financial report till 30 June.
Earlier, on 15 October, 2009 the CLB had given an extension to Satyam till 30 June to file all the documents, including the financial statements for financial years 2008 and 2009 and the quarterly financial reports as required under the listing agreements with the bourses.
Satyam, which has been renamed as Mahindra Satyam after its takeover by Tech Mahindra in April 2009, came under the scanner when its founder chairman B Ramalinga Raju confessed to cooking the company’s books on 6 January, 2009. The scam, the biggest in the country’s corporate history, is estimated to be over Rs10,000 crore.
ESPN Star Sports MD Venkateish resigns
R C Venkateish, managing director of ESPN Star Sports India, has quit the sports broadcasting company. In a press release issued today, the company stated that the decision to part ways was mutual and is applicable with immediate effect.
Manu Sawhney, managing director of ESPN Star Sports Asia, said that Venkateish worked for ESPN Star SPorts for seven years and made a significant contribution to the channel’s business in India. ”His passion and dedication has further strengthened our powerful ESPN, STAR Sports and STAR Cricket brands across the South Asia region,” he said.
Vijay Rajput, chief operating officer of ESPN Star Sports India, will take charge in the interim till Venkateishâ€™s successor is announced. Rajput has been a key member of the company for over 12 years and worked closely on different facets of the business, including finance, legal and sales. Venkateish has left the company even before FIFA, the Football World Cup, concludes. Sawhney said that the broadcaster has a ”fantastic calendar” as Football World Cup will be followed by Champion’s League T20 in September, the ICC World Cup early next year as well as other premium properties such as Formula 1.