Infrastructure and construction company, IVRCL, has chalked out a multi-pronged strategy that includes holiday from bidding for new road BOT projects to stay afloat. Problems in national highway projects such as delays in land acquisition, right of way, cautious approach of lenders and delayed payments are some of the reasons behind this strategy of the company. Although, the company would be on bidding holiday for six months, this period could be extended, depending upon the prevailing market condition.
Further, as a part of this strategy, company would now be monetizing existing road projects and real estate assets, downsizing the manpower, spreading the construction business to overseas markets, strengthening manufacturing operations and will be focusing on large amount of receivables.
Additionally, the company, which suffered a loss of Rs 124 crore for the 15-month year ended June 2012, is also planning to sell at least three of its road projects, all in southern India, by March 2013 to raise over Rs 400 crore, which would in turn reduce its total debt by around Rs 1000 crore.
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.
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 4094.95 |
| Rail Vikas Nigam | 303.10 |
| NCC | 161.30 |
| KEC International | 580.10 |
| Kalpataru Projects | 1232.90 |
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