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IVRCL plunges on plans to churn assets portfolio to reduce debt burden

30 Nov 2011 Evaluate

IVRCL is currently trading at Rs. 33.55, down by 1.10 points or 3.17% from its previous closing of Rs. 34.65 on the BSE.

The scrip opened at Rs. 34.50 and has touched a high and low of Rs. 34.50 and Rs. 33.10 respectively. So far 133843 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 136.25 on 02-Dec-2010 and a 52 week low of Rs. 28.40 on 18-Nov-2011.

Last one week high and low of the scrip stood at Rs. 36.10 and Rs. 30.35 respectively. The current market cap of the company is Rs. 925.19 crore.

The promoters holding in the company stood at 11.01% while Institutions and Non-Institutions held 43.04% and 45.95% respectively. 

IVRCL, construction and EPC major is planning to churn its income-generating assets portfolio, including toll ways, to trim down its debt, which stands at Rs 2,400 crore at present.  Earlier company had announced the plans to restructure its business. 

The company is going to sell stake in some of the road assets, including toll ways, exiting some large water treatment projects or even inducting strategic investors. Several investors and construction companies have evinced interest in partnering the company.

In Chennai company has five major revenue generating projects three of them toll ways, a large water treatment project and a self-funded golf course project. All of them are income-generating, barring the Golf project, where a Kotak arm is a strategic partner. By divesting stake, company will be able to bring down the debt burden by about a third.

Peers
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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