IVRCL, arm get boards' nod to pursue merger plan

Hyderabad-based engineering and construction company IVRCL Limited, and its subsidiary IVRCL Infrastructures and Projects Limited, on Monday received in-principle approval from their respective boards to pursue the proposal for amalgamation of IVCL Assets with IVRCL Limited.

The boards, at their respective meetings held on Monday, also accorded consent for demerger of IVRCL Limited’s manufacturing factory into a special purpose vehicle (SPV) and also the real estate activity of IVRCL Assets into a separate subsidiary company.

The approval, however, is subject to acceptance of a fair swap ratio and other commercial matters by the boards, receipt of approvals from requisite statutory and regulatory authorities, shareholders and the Andhra Pradesh High Court, IVRCL Limited said in a filing to the BSE on Monday.

The boards of IVRCL and IVRCL Assets intend to meet again to consider the terms of the proposed amalgamation, including the share swap ratio after receipt of the valuation report, the fairness opinion and the draft scheme of amalgamation.

Towards this, the boards approved appointment of legal advisors and merchant bankers to determine the share swap ratio and to obtain fairness opinion on the same, the company said.

IVRCL’s scrip ended the trade at Rs 41.40 on the BSE on Monday, up 2.10 per cent, over the previous close of Rs 40.55.