The IVRCL Group firms have secured Andhra Pradesh High Court nod for composite scheme of merger.
The Court has sanctioned the Composite Scheme of Arrangement between IVRCL Ltd and IVRCL Assets & Holdings Ltd and two subsidiary companies of IVRCL — RIHIM Developers Pvt Ltd and IVRCL TLT Pvt Ltd.
This will be binding on their respective shareholders and secured creditors and employees of the company and all concerned. The effective date of the scheme is April 1, 2011.
The Chief Financial Officer of IVRCL, Mr R. Balarami Reddy, told Business Line that this move will help consolidate the infrastructure and construction business while providing the necessary liquidity for IVRCL AH shareholders post-merger. Shares of IVRCL AH will not be traded henceforth.
IVRCL shall issue five equity shares for every six equity shares held by the shareholders of IVRCL AH as on a record date to be fixed in consultation with the stock exchanges.
Consequent to the scheme, the real estate business of IVRCL AH shall stand demerged into a separate company RIHIM, which will be a 100 per cent subsidiary of IVRCL and the remaining undertaking of IVRCL AH stands merged with IVRCL.
IVRCL AH stands dissolved without being wound up. The Transmission Line Tower unit of IVRCL stands demerged as a separate 100 per cent subsidiary of IVRCL. The shares of Hyderabad-based infrastructure company IVRCL, which was in news earlier this year with the Subhash Chandra-promoted Essel group picking up stake, closed the day’s trade at Rs 44.75 up 5.67 per cent.