Companies

IVRCL receives ₹1,655-crore bid under liquidation process

V Rishi Kumar Hyderabad | Updated on March 06, 2020

Under its liquidation process, IVRCL Ltd has received a bid, through an e-auction, for the sale of the company as a going concern.

After repeated postponement of the liquidation process, IVRCL received an offer, of ₹1,654.77 crore, from GABS Megacorp Ltd.

The debt-laden infrastructure company was ordered to be liquidated by the National Company Law Tribunal (NCLT), Hyderabad, after the process to finalise a revival plan failed.

Sutanu Sinha, who was appointed as IVRCL’s liquidator, said in a statement to the BSE that the company received an offer. The sale would, however, be “subject to the decision of the National Company Law Appellate Tribunal, Delhi”, he said.

The process of e-auction, which was intimated to the exchanges in September 2019, later resulted in several addenda to the main advertisement inviting potential suitors.

In the past few years, the company’s performance had taken a major hit due to banks and financial institutions facing defaults and delayed payments by the company.

This resulted in one of the banks dragging the company to the NCLT, as there was no final suitor during the course of the resolution process. Following this, last July, the NCLT directed the liquidation of the company as a going concern.

The company, which once commanded an order book of over ₹25,000 crore and was known for executing some major projects across the country, has been facing mounting debt and defaults.

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Published on March 06, 2020
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