IVRCL to resist hostile takeover attempt
HYDERABAD: Is IVRCL Ltd next in line after Satyam Computer Services to move its base out of Hyderabad?
If the Subash Chandra-promoted Essel Group's intent to increase its stake from the current 10.19 per cent in the infrastructure company is anything to go by, IVRCL could soon be facing a hostile takeover bid from the Mumbai- based company.
'In line with the philosophy to grow the infrastructure business to match and benefit from the rising proportion of infrastructure investment by India, the Essel Group has acquired a 10.19 per cent stake in IVRCL Ltd and is keen to increase it and is in the process of increasing it,' the group said in a statement Tuesday.
When contacted, IVRCL officials told that the promoters have no intention of selling stake and will fight against a takeover battle if any. Sources added that investors and bankers are willing to support the promoters if they choose to counter the takeover battle if triggered by Essel.
According to SEBI norms, a potential suitor should have at least 25 per cent stake in a company to trigger a hostile acquisition bid.
As of December 31, 2011, IVRCL promoters hold 11.18 per cent stake, institutions including mutual funds, FIIs and banks together have 42.51 per cent, while the remaining is with individuals and non-institutions.
IVRCL's current market capitalization is about `1,612 crore and Essel Group's stake is valued at about Rs 160 crore.
While shares of IVRCL rose as much as 4.7 per cent on BSE on Wednesday, they closed at `60.05, 0.58 per cent down from the previous close of Rs 64.40.
In 2010-11, IVRCL reported a revenue of `5,651.45 crore and a net profit of 157.90 crore.
News Posted: 29 March, 2012
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