IVRCL sells stake in Chennai Desalination Plant

City-based infrastructure developer IVRCL Limited today said it has entered into a binding agreement with Dubai-based Utico FTZ to sell its equity in a desalination plant at Chennai.
Chennai Water Desalination Limited, which owns the Rs 550 crore plant, is a subsidiary of IVRCL and the total equity valuation of the company is Rs 150 crore, IVRCL said in a statement.
IVRCL holds 75 per cent stake in the company while rest is with a technical partner from Spain.
"The transaction is expected to complete in three months, subject to the approvals of Chennai Metropolitan Water Supply and Sewerage Board, lenders and other applicable authorities and satisfaction of certain agreement related conditions," the statement said.

When contacted, IVRCL Group's Chief Financial Officer, Balaram Reddy told PTI the company would get 75 per cent of Rs 150 crore towards its stake sale at Rs 112.5 crore.
The company would also shed the debt component of the project from its books.

CWDL is a 100 million litres per day sea water desalination project located in Minjur in Tamil Nadu. The project is operational since July 2010 with a concession period of 25-years with the Chennai Metropolitan Water Supply and Sewerage Board.
CWDL recorded a turnover of Rs 185 crore during 2013-14 comprising 3.71 per cent of IVRCL group's turnover.

Shares of IVRCL closed at Rs 15.25 apiece, up 12.13 per cent over previous close on BSE.