IVRCL Assets & Holdings Ltd (formerly known as IVR Prime Urban Developers Ltd) has raised Rs 250 crore ($55.5 million) from government controlled development finance institution IFCI Ltd through compulsorily convertible debentures.

The company has stated the issue of debenture will be non dilutive on the holding company or IVRCL Assets & Holdings Ltd. The fund will be used as equity at the project company level for two subsidiaries: IVRCL Indore Gujarat Tollways Ltd (IIGTL) and IVRCL Chengapally Tollways Ltd (ICTL).

IIGTL is implementing upgradation of Gujarat-Madhya Pradesh border stretch which is a part of National Highway-59, from 2-lane to 4-lanes from Indore to Jhabua of 155.15 km length. The project awarded by the National Highway Authority of India is to be executed on a design build-finance-operate-transfer (DBFOT) toll basis with a concession period of 25 years.

ICTL is implementing the project of 4/6 laning of the road in Chengapalli-Coimbatore-Walayar(Tamil Nadu-Kerala border). The project has a similar DBFOT toll structure with concession for 27 years.

IVRCL Assets & Holdings Ltd is majority (80%) owned by IVRCL Infrastructures & Projects Limited that in turn is 55% owned by foreign institutional investors and also counts amongst its investors Azim Premji, the promoter of Wipro.

IVRCL Assets & Holdings is into real estate development with a market cap of around $500 million, but has several subsidiaries that are into other infrastructure development projects including tollways.

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