The Hindu Business Line : Two foreign cos invest in IVRCL

CITICORP International Finance Corporation (CIFC), a unit of Citigroup Global Investments of USA and ChrysCapital II, LLC of Mauritius, have invested Rs 78 crore in IVRCL Infrastructures & Projects Ltd.

The entry of the two companies would be facilitated through fresh issue of 31.2 lakh shares each, amounting to 37 per cent stake in IVRCL, according to the IVRCL's Vice-Chairman and Managing Director, Mr E. Sudhir Reddy.

Mr Reddy stated that the additional funding would be used by IVRCL to de-leverage its balance sheet and also prop up its net worth, which would be around Rs 200 crore.

Increase in the net worth was one of the main financial criteria for pre-qualification for high value projects. The company has plans to enter new technical areas and was hopeful of achieving a turnover of Rs 1,000 crore in the current fiscal.

In addition, Mr Reddy said in a press release here on Friday, the promoters of IVRCL have subscribed to 4 lakh warrants of Rs 125 each. Apart from giving the company a higher market cap, the investments from the two foreign companies would also ensure better and competitive interest rates for IVRCL from the consortium of bankers.

These investors were also brought in not just to mobilise funds but also as strategic partners to drive the company through new growth paths with their global contacts and contracts.

Currently, IVRCL is involved in urban infrastructure projects worth around Rs 1,700 crore, spread across 12 States in the country.

These projects pertained to water, roads, townships and power.

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