IVRCL builds up on allotment of shares under SDR plan

IVRCL has made an allotment of 646810 equity shares at a price of Rs. 8.765 each, to Bank of Nova Scotia. The company’s allotment for equity shares is according to the Strategic Debt Restructure terms with its lenders.

IVRCL’s allotment is pursuant to provisions of Companies Act, 2013 and SEBI (Issue of Capital Disclosure Requirement) Regulations, 2009 and implementation of Strategic Debt Restructuring (SDR).

In December last year, IVRCL’s lenders have invoked SDR in the company. The company is facing more problems from quite a long period of time. It has initiated a number of measures to streamline IVRCL’s business while restructuring its functioning.

On financial front, IVRCL’s revenue has decreased by 21.13 per cent to Rs 3013 crore in FY16 as compared to previous fiscal year. The company has posted EBITDA loss of Rs 390 crore in FY16 while EBITDA loss of Rs 266 crore in FY15. It has posted a net loss of Rs 1479 crore during FY16 against net loss of Rs 1557 crore in FY15.

The share price of IVRCL has increased by 9.11 per cent on bourses in early trades and is trading at Rs 5.1 on an intraday basis.

IVRCL is engaged in the business of development and execution of engineering, procurement, construction and commissioning (EPCC) and lump sum turnkey (LSTK) facilities. The company's segments include Engineering & Construction, Real Estate and Manufacturing.