IVRCL Assets to raise Rs 1,000 cr via QIP

Infrastructure development company IVRCL Assets & Holdings today said it will issue bonus shares in 1:2 ratio to the shareholders and will raise Rs 1,000 crore by private placement of shares.

The board of the company has approved issuing bonus shares in the ratio of one share for every two held by the equity shareholders of the company, IVRCL Assets & Holdings (formerly known as IVR Prime Urban Developers Ltd) said in a filing to the Bombay Stock Exchange.

The board has also decided to raise Rs 1,000 crore by way of qualified institutional placement (QIP) with potential buyers in one or more tranches to increase the net worth of the company and enable it to bid for large infrastructure projects, the filing added.

These proposals are subject to shareholders approval who will meet on May 10.

The company has over Rs 7,500 crore infrastructure projects under implementations. The equity investment is estimated to be around Rs 1,100 crore to be invested over three years by way of internal accruals, debt, sale of land and equity raising.

The board also appointed S Ramachandran as Managing Director.

Shares of IVRCL Assets & Holdings were trading at Rs 186.05 on BSE, up 4.70 per cent from previous close.