Subhash Chandra-led Essel Group bought a 10.2 per cent stake in Hyderabad-based IVRCL to further its interests in infrastructure. Based on IVRCL’s current market capitalisation of Rs 1,612 crore, the deal worked out to be Rs 164 crore.
Group company Asian Satellite Broadcast bought 4.73 million shares of IVRCL at Rs 60.4 apiece, valuing the transaction at Rs 28.6 crore. The shares represented two per cent of the company’s outstanding shares.
The group said it was in the process of increasing its stake in IVRCL. “The group sees exciting business possibilities to expand its infrastructure portfolio through this investment,” the group said in a statement. It said neither Zee Entertainment Enterprises nor any other media entity of the group had anything to do with the investment.
Before on Tuesday’s announcement, IVRCL stocks had gained 17 per cent in the past week. The shares closed 1.94 per cent higher at Rs 60.4 on the Bombay Stock Exchange.
