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IVRCL strengthens on getting nod for Rs 7350 crore debt recast proposal

02 Jul 2014 Evaluate

IVRCL is currently trading at Rs. 27.75, up by 1.25 points or 4.72 % from its previous closing of Rs. 26.50 on the BSE.

The scrip opened at Rs. 27.80 and has touched a high and low of Rs. 27.80 and Rs. 27.20 respectively. So far 982243 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 30.75 on 22-May-2014 and a 52 week low of Rs. 9.80 on 31-Jan-2014.

Last one week high and low of the scrip stood at Rs. 27.15 and Rs. 23.80 respectively. The current market cap of the company is Rs. 850.08 crore.

The promoters holding in the company stood at 13.70 % while Institutions and Non-Institutions held 12.01 % and 74.29 % respectively.

IVRCL has received approval for debt recast proposal from Corporate Debt Restructuring Empowered Group of the Reserve Bank of India. The restructured package covers Rs 7,350 crore. About 20 banks led by State Bank of India (SBI) were involved in the restructure process. Under CDR, banks typically increase the repayment period of loans to stressed borrowers, offer a moratorium and reduce lending rates.

This will enable the company to take off again by implementing various projects which were stuck due to funding issues. Moreover, the company will have access to a priority debt of Rs 175 crore, additional cash credit of Rs 200 crore, Rs 1,400 crore non-fund credit and Rs 300 crore of letter of credit. All of them will be interest-free from December 1, 2013, and have a moratorium of 28 months on term loans.

IVRCL is engaged into engineering procurement and construction (EPC) activities in India. It conducts operations in 5 sectors namely Water and Environment, Transportation, Buildings, Power and Industrial Structures.

Peers
Company Name CMP
Larsen & Toubro 4054.00
Rail Vikas Nigam 307.25
NCC 165.10
KEC International 580.10
Kalpataru Projects 1263.55
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