The market buzz about the Subhash Chandra-promoted Essel Group picking up additional stake has lifted the IVCRL stock up at the NSE and BSE by 8.33 per cent and 7.83 per cent respectively on Thursday's trade.

The stock closed the day at Rs 65.05 and Rs. 64.75 on the NSE and BSE respectively. The market was abuzz that the Essel group through its group entities and persons acting in concert had acquired additional stake from the open market purchases and have commitments from institutional investors.

Indications are that this could be about 20 per cent.

However, there were no fresh disclosures to the stock exchanges about any block deals during the day.

On Thursday, IVRCL announced its board's decision to extend the company's financial year 2011-2012 by three months, up to June 2012. Accordingly, the annual accounts for 2011-2012 shall be prepared for 15 months from April 1, 20111 to June 30, 2012.

Collective performance

The Executive Director Finance of IVRCL, Mr R. Balarami Reddy, told Business Line the extension of the year is being done as the company has taken up a restructuring process of merger of group entities. The process is likely to be completed by then. This would help reflect the performance of the companies collectively.

On Essel picking up additional stake through market purchases, Mr Reddy said each time they make additional purchase of two per cent they would have to intimate to the exchanges as per guidelines. Unlike yesterday, the number of sellers has come down.

The Chairman of IVRCL, Mr E. Sudhir Reddy, who is stated to be in touch with banks and other infrastructure firms, is expected to be back home tomorrow after a tour of Australia.

vrishi@thehindu.co.in

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