Infrastructure player IVRCL Assets and Holdings Ltd, part of Hyderabad-based IVRCL Group, is raising Rs 150 crore ($33.8 million) from Ascent India Fund III. The private equity fund, managed by the Bangalore-based Ascent Capital, is picking up the shares at Rs 129, slightly higher than today’s closing price of Rs 127.9. Based on the current outstanding share capital, the PE firm could have around a 5.9% stake in IVRCL Assets and Holdings.
The board of IVRCL has approved the deal and called for an EGM to get shareholders approval.
IVRCL Assets & Holdings Ltd, formerly known as IVR Prime Urban Developers Ltd, owns assets of the group in areas like real estate and tollways. The company reported revenues of Rs 159 crore with a loss of Rs 31 crore in FY10.
The group undertook a restructuring of business earlier this year and merged IVR Strategic Resources and IVRCL Water Infrastructures Ltd with IVRCL Assets & Holdings. Under the restructuring, IVRCL Assets & Holdings will now handle all real estate and BOT projects while IVRCL Infra would handle all EPC projects.
While IVRCL Strategic Resources handled BOT road projects, IVRCL Water nfrastructures dealt with desalination and sewage treatment projects. Both of these units were subsidiaries of group flagship IVRCL Infrastructures and Projects Ltd, which now holds more than 80% stake in IVRCL Assets & Holdings.