IVRCL surges as board mulls business restructuring

IVRCL jumped 5.01% to Rs 9.65 at 12:44 IST on BSE after the company said its board of directors decided to carve out the business of the company into two companies by way of scheme of arrangement.

The announcement was made on Saturday, 19 December 2015.

Meanwhile, the S&P BSE Sensex was up 146.32 points or 0.57% at 25,665.54.

On BSE, so far 6.68 lakh shares were traded in the counter as against average daily volume of 6.48 lakh shares in the past one quarter.

The stock hit a high of Rs 10.20 and a low of Rs 9.50 so far during the day. The stock had hit a 52-week high of Rs 21.30 on 3 March 2015. The stock had hit a 52-week low of Rs 6.52 on 21 September 2015.

The stock had outperformed the market over the past one month till 18 December 2015, gaining 0.88% compared with Sensex's 0.14% rise. The scrip had also outperformed the market in past one quarter, surging 39.03% as against Sensex's 2.67% fall.

The small-cap company has equity capital of Rs 101.51 crore. Face value per share is Rs 2.

IVRCL's board of directors at a meeting held on Saturday, 19 December 2015, decided to carve out the business of the company into engineering, procurement and construction (EPC) company and assets company which includes land and other assets, by way of scheme of arrangement subject to requisite approvals. The carve out of EPC business is to enable investment by potential equity investors, IVRCL said. Further, the board of directors also decided to convene a meeting of the shareholders of the company to approve conversion of part of the debt into equity shares of the company pursuant to invocation of strategic debt restructuring (SDR) by joint lenders forum (JLF). The board also approved further issue of shares to certain corporate debt restructuring (CDR) lenders on conversion of additional funded interest term loan (FITL).

IVRCL reported net loss of Rs 305.46 crore in Q2 September 2015, higher than net loss of Rs 187.55 crore in Q2 September 2014. Net sales rose 4.8% to Rs 641 crore in Q2 September 2015 over Q2 September 2014.

IVRCL is a leading engineering, procurement and construction (EPC) and infrastructure company. Its core areas of work include value chain across sectors such as water & environment, irrigation, transportation and power distribution & transmission.

Powered by Capital Market - Live News