Hyderabad-based infrastructure company IVRCL Infrastructures and Projects Ltd is scouting for a strategic investor for its Maharashtra-Goa highway project worth Rs 3,100 crore. It is also mulling to offload some of its land bank to infuse capital for further investments.
“We are open to inducting a strategic partner in the special purpose vehicle (SPV) for the Maharashtra-Goa highway project as the company has 100 per cent holding in this entity,” S Ramachandran, managing director, IVRCL Assets and Holding, said.
The company bagged one of the largest toll projects in the country, stretching 122.06 km, from the National Highway Authority of India in June. The project taken up under the National Highway Development Programme (NHDP)-phase III, has a concession period of 23 years and has a capital grant of Rs 644.72 crore.
As per the specifications, this project will undertake four-laning and six-laning work on the NH-17 from the Maharashtra -Goa border to Panaji-Goa-Karnataka.
In addition to the present road project, IVRCL has another four projects like Salem to Kumarpalyam of 53 kms, Kumarpalyam to Chengapalli of 47 km, Jalandhar to Amritsar of 49 kms and Guna bypass in Madhya Pradesh of 13 kms to work on.
“We have achieved financial closure of three of the four road projects as of now. Financial closure for Kumarpalyam to Chengapalli project is expected to be achieved by The end of this month,” Ramachandran said.
In order to fund its future investments, the company is also planning to offload some of its land bank with a possible dilution of its present holding in an improved market condition.
“We have a target to offload Rs 100 crore worth of land this fiscal. However, it will depend on proper valuation of the land parcel as we are averse to any distress sale,” he added.
In an improved market condition, the company may opt to dilute up to 5 per cent stake from its present holding of 80.5 per cent after proper valuation, he said.
IVRCL Assets and Holding Ltd, which posted a loss of Rs 6.40 crore and a revenue of Rs 143.11 crore last fiscal, is expected to return to black during the present fiscal.
“We expect a bottomline of Rs 100 crore and a turnover of Rs 1,000 crore during the present fiscal,” Ramachandran said.
IVRCL Infrastructure posted a net profit of Rs 211 crore for FY10, down by 6 per cent over corresponding period last year. While net debt of the company was Rs 1,450 crore by March, 2010, its order book stood at Rs 19,500 crore by May-end.
