Home / Financial News / IVRCL to retire Rs 2,500-cr debt by March 2015

IVRCL to retire Rs 2,500-cr debt by March 2015

Hyderabad-based infrastructure development company IVRCL Limited is set to retire debt to the tune of Rs 2,500 crores by March 2015 through sale of three build, operate and transfer (BOT) assets.

The company’s chairman and managing director, E Sudhir Reddy, told mediapersons on Monday that talks pertaining to the sale of assets were in the final stages and the deals were expected to be completed in a couple of months. He was hopeful that IVRCL would come out of the red in the next financial year.

Currently, the consolidated debt of the company stood at Rs 6,500 crores. It had incurred a net loss of Rs 716.78 crores for the year ended March 2014.

Reddy said that the IVRCL had put on block all of its BOT projects comprising seven road projects and one desalination plant. Of these, the desalination plant near Chennai had already been sold while the sale of three road projects- Indore-Jhabua in Gujarat, Madurai-Kanyakumari in Tamil Nadu and Jalandhar- Amritsar in Punjab, would be completed by March. The remaining four road projects would be sold in 2015-16 as part of the company’s strategy to exit all BOT projects and focus on water and EPC projects.

Following this, he said, IVRCL would be retiring debt to an extent of Rs 3,500 crore. This would also lead to an inflow of about 1,500 crores into the equity of the company and reduction of interest burden by Rs 300-350 crores. The company paid an interest of Rs 650 crores in 2013-14.   

“The whole idea is to take back the company’s top line to the earlier levels of Rs 8,000 crores”, Reddy said adding that the company would resort to sale of its real estate assets after the disposal of BOT assets. It has  a landholding of 1,700 acres spread over Chennai, Pune, Bengaluru and Visakhaptanam whose current market value was estimated at Rs 3,000 crore.

Leave a Reply

x

Check Also

Debate on Article 370 marked by posturing, says RSS

The Rashtriya Swayamsevak Sangh (RSS) is recalibrating its discourse on its demand ...

Street cautiously positive on JSPL post coal mine

Jindal Steel and Power (JSPL), which witnessed its lowest point in the ...