Friday, 30 March 2012
IVRCL stock jumps 8% on takeover
On the back of media mogul Subhash Chandra's Essel Group increasing its stake in Hyderabad-based infrastructure company IVRCL to over 10% through market operations, the company's stock jumped nearly 8% in Thursday's weak market to Rs 65 on BSE. The rise in stock price is being attributed to the group's stated intentions of increasing its stake in the company.
In a statement to the bourses, IVRCL informed that its board of directors had approved the extension of its financial year 2011-12 by three months up to June 30, 2012. According to Balarami Reddy, CFO, IVRCL, the extension had been sought because the merger of IVRCL Assets & Holdings with IVRCL was still under way and would not be over before the full year financial result of IVRCL.
Currently, at 10.2%, Essel Group's holding is very close to the promoters' holding in the Rs 5,600-crore company, which is at 11.2%. Industry observers said that the chances of IVRCL changing hands are high. Himanshu Modi, head, finance and strategy, Essel Group, told ET Now, "We have clearly stated that we want to increase our stake. But it is too early to judge this as a hostile takeover." According to the new Indian takeover guidelines, the trigger limit is at 25%. Since its December 27 low at Rs 27, the IVRCL stock has gained nearly two-and-half times.
In a statement to the bourses, IVRCL informed that its board of directors had approved the extension of its financial year 2011-12 by three months up to June 30, 2012. According to Balarami Reddy, CFO, IVRCL, the extension had been sought because the merger of IVRCL Assets & Holdings with IVRCL was still under way and would not be over before the full year financial result of IVRCL.
Currently, at 10.2%, Essel Group's holding is very close to the promoters' holding in the Rs 5,600-crore company, which is at 11.2%. Industry observers said that the chances of IVRCL changing hands are high. Himanshu Modi, head, finance and strategy, Essel Group, told ET Now, "We have clearly stated that we want to increase our stake. But it is too early to judge this as a hostile takeover." According to the new Indian takeover guidelines, the trigger limit is at 25%. Since its December 27 low at Rs 27, the IVRCL stock has gained nearly two-and-half times.
