Two of the three nominees of the Himachal Futuristic Communications (HFCL) group have resigned from the board of the Hyderabad-based IVRCL Infrastructures & Projects Ltd.
Confirming the development, a senior IVRCL official said that this was "a result of little synergy that has been found between the operations of both the groups." Both the companies had thought of taking up turnkey projects in telecommunications. "But this could not add much to our topline and bottomline. HFCL is also restructuring its business. They decided to resign from our board," the source said.
Despite the resignation, HFCL group is still holding about 36 per cent stake in the Rs 300 crore construction company. "As of now, there is no proposal to divest their holding. They are happy with the performance of our company," the IVRCL official said.
Last year, the group had picked 38 lakh equity shares of IVRCL through a preferential offer at Rs 105 a share and nominated three representatives on IVRCL board.
Of the three nominees, Pannalal Maloo and Anil Kumar Nahata, have resigned, while C K Ghousal continues as a director.
IVRCL has a turnkey order book of Rs 1,167 crore spanning water pipe lines, roads & bridges, oil and gas pipeline installations, power transmission lines among others. The company recorded a net profit of Rs 13 crore on a turnover of Rs 267 crore during 2000-01.
