IVRCL looks to raise Rs 1,200 crore

IVRCL Ltd seeks to raise up to Rs 1,200 crore to augment working capital requirements and infuse capital into new projects.

The Hyderabad-based construction and infrastructure company has enlisted the services of SBI Caps to facilitate fund-raising, according to people in the know of the development.

With interest rates ruling high for several quarters and regulatory and implementation issues impacting the pace of construction, the company had to contend with tough quarters during the current fiscal and last fiscal, which had an impact on the overall cash flow.

The company, which has already divested stakes in three road projects to Tata Realty and Infrastructure Ltd (TRIL), looks to divest stake in its Chennai desalination project and Jalandhar highway project. It recently secured approvals for divestment in three road projects to TRIL from the National Highways Authority of India and nod from the Income Tax Department.

A senior company official, who did not want to be identified, confirmed the company’s plans to raise funds. The mode of raising funds has not yet been decided, he said.

The holding company is now saddled with a debt of Rs 2,800 crore and at the special purpose vehicle level, it has a debt burden of Rs 2,000 crore. The company wants to divest stakes in some of the matured projects to bring down debt and infuse fresh equity into new projects. It has also decided to stay away from build, operate and transfer projects to focus on equipment, procurement and construction contracts.

> rishikumar.vundi@thehindu.co.in

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