IRB Infrastructure Developers today said its board has approved acquisition of 34 per cent stake in its arm Aryan Infrastructure Investments Pvt Ltd (AIIPL) from promoters to make it a wholly-owned subsidiary.
IRB Infrastructure at present holds 66 per cent stake in AIIPL while promoter and promoter entity together hold remaining 34 per cent equity.
"With a view to acquire 100 per cent ownership and control of AIIPL, valuation of its assets was carried out through a reputed valuer. Based on the valuation and after considering a further discount of 20 per cent, the board has approved investment ... By way of acquisition of aforesaid 34 per cent stake, thereby making AIIPL a 100 per cent subsidiary of IRB," IRB Infrastructure said in a filing to BSE.
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It said the board also took note that the contract awarded by AIIPL to a promoter entity will be terminated post AIIPL becoming a 100 per cent subsidiary of IRB, it said.
"As a result the promoter entity will return the outstanding mobilisation advance to AIIPL...Hence ...Consolidation in AIIPL is achieved without any cash outgo from IRB group," it said.
The company said it has been following the practice to own and control 100 per cent of its subsidiaries for better governance and operational efficiencies.
Shares of the company closed at Rs 236.25 apiece on the BSE, up 1.50 per cent from previous close.
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