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Debt-laden infra firm IVRCL keeps hope of finding new promoter alive

Firm's lenders couldn't find new promoter within 18-month period ending May 25, stipulated under SDR

BS Reporter  |  Hyderabad 

Debt-laden infra firm IVRCL keeps hope of finding new promoter alive

The management of the debt-laden infrastructure company has hinted at the possibility of acquisition by a new investor.

Over 50 per cent of the stake in the company is currently held by its lenders as part of the (SDR) invoked in 2015.

Under the scheme, these banks were required to transfer at least 26 per cent of their shareholding to a new promoter within the stipulated period of 18 months, which ended on May 25.

In a filing with the stock exchanges, management, however, hinted that the chances of roping in a new promoter were still there.

"The management of the company believes that the lenders have been approached by an investor with a non-binding offer to acquire the their stake. The management also believes it will complete the divestment plan and meet its obligations in due course of time with the help of such a new investor. Accordingly, financial statements have been prepared on the assumption that the company is a going concern," the company said while releasing its fourth quarter results.

A senior management official, however, refused to elaborate on these claims. The company scrip hit the upper circuit in the afternoon trade on the before closing at Rs 4.84 per share, up 16.91 per cent over the previous day's close on Wednesday.

Further, the company has reported a standalone net profit of Rs 626.06 crore by making use of a amounting to Rs 957.40 crore for the quarter ended March 2017, as compared to a net loss of Rs 264.26 crore in the corresponding quarter previous year. This is the first quarter of profit ever reported by the company in recent years.

For the full year, the company reported a standalone net loss of Rs 131.37 crore after taking into account the Rs 960-crore as compared to a net loss of Rs 1,067 crore in the previous year.

The accumulated losses of the company stood at Rs 2,172.99 crore as on March 31, 2017. It has a total debt obligation of Rs 5,347.42 crore, including Rs 1,768.24 crore falling due over next twelve months, according to the filing.