IVRCL rallies over 8% on assets sale plan to pare debt

NEW DELHI: IVRCL Ltd surged as much as 8.7 per cent in trade on Wednesday after the cash strapped infrastructure major said that it has put up Rs 4,000 crore worth of assets for sale and expects to come out of debt burden in the next two years once the sale is successful, a senior official has said.

At 09:20 a.m.; IVRCL was trading 6.8 per cent higher at Rs 16.50. It hit a low of Rs 16.05 and a high of Rs 16.80 in trade today.

IVRCL Ltd Chairman and Managing Director E Sudhir Reddy said the assets for sale includeRoad projects both operational and under construction and Desalination plant in Chennai, PTI reported.

Corporate Debt Restructuring Empowered Group had earlier approved the company's proposal for a debt recast package of Rs 7,300 crore.

IVRCL is facing cash crunch due to economic slowdown, higher interest charges, and slower pace of execution of projects.

As part of debt recast, IVRCL is also eligible to get a fresh loan of Rs 175 crore that can be used towards meeting working capital requirements besides getting Rs 1,400 crore bank guarantees among other facilities, said the PTI report.