The Competition Commission of India (CCI) has approved the proposed amalgamation of IVRCL Assets and Holdings with parent IVRCL and the demerger of its real estate business into a new company.
"Further, the company has informed that approval of the CCI to the aforesaid scheme has been received by way of order under Section 31(1) of the Competition Act, 2002, vide Combination Registration No. C-2011/12/13, dated January 17, 2012," IVRCL said in a filing to the BSE.
IVRCL Assets and Holdings had earlier informed the Bombay Stock Exchange (BSE) that the board of directors of the company and IVRCL, at their respective meetings, accorded in-principle consent to pursue the amalgamation, subject to acceptance of a fair share swap ratio and other commercial matters.
The boards have also approved the appointment of legal advisors and merchant bankers to determine the share swap ratio and obtain a fairness opinion thereof.
IVRCL clocked a net profit of Rs 158 crore on a turnover of Rs 5,651 crore during FY11, while IVRCL Assets and Holdings suffered a net loss of Rs 47 crore on income of Rs 683 crore for the same period.
As per the scheme, shareholders of IVRCL A&H will received five fully paid-up equity shares of Rs 2 each in IVRCL for every six shares of Rs 10 each held on the record date to be fixed as per the listing agreement.
At present, IVRCL holds 75.72% of the equity share capital of IVRCL A&H.
Shares of IVRCL and IVRCL A&H were being quoted at Rs 50.15 and Rs 37.65, respectively, up 9.6% and 10.58%, on the BSE today.