Financial Daily from THE HINDU group of publications
Wednesday, Dec 25, 2002
IVRCL Infrastructure to raise public deposits
HYDERABAD, Dec. 24
IVRCL Infrastructures & Projects Ltd, the Hyderabad-based company implementing turnkey infrastructure projects, proposes to raise fixed deposits from the public as well as shareholders.
The company executes lump sum turnkey projects with front-end engineering and design capabilities.
It is currently executing key projects relating to water distribution systems, highways and roads, bridges, buildings and industrial structures and electrical transmission lines.
According to the IVRCL Managing Director, Mr E. Sudhir Reddy, the order book position of the company as on September 21 stood at Rs 1,704.72 crore, of which works valued at Rs 554.97 crore were completed.
IVRCL is eligible to raise deposits to the extent of 25 per cent of the aggregate paid-up share capital and free reserves, which amounts to Rs 21.52 crore, and deposits from the shareholders and deposits guaranteed by directors to the extent of 10 per cent of the aggregate paid-up share capital and free reserves, amounting to Rs 8.61 crore, taking the total eligibility to Rs 30.13 crore.
The company plans to raise fixed deposits under two schemes - non-cumulative and cumulative. Under the non-cumulative scheme, it offers an interest of 10.25 per cent for one-year tenure, 10.5 per cent for two years and 10.75 per cent for three years.
Under the cumulative scheme, it proposes to offer effective yield of 10.92 per cent for one-year term, 11.82 per cent for two years and 12.83 per cent for three years tenure.
According to Mr Reddy, the interest would be compounded at quarterly rests under the cumulative scheme. Payments of interest would be made by issue of post-dated interest warrants to be mailed in advance for each financial year.
Interest warrants for the first year would be sent with the fixed deposit receipt. Further, interest on non-cumulative deposits would be paid quarterly, Mr Reddy said.
IVRCL, which has registered a compounded annual growth rate of 53 per cent from 1996-97 to 2001-02, currently has a net worth of Rs 90.05 crore with the book value standing at Rs 86.22 per share. The company has been paying dividend of 30 per cent per annum for the last five fiscal years.
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