IVRCL sold for Rs 1200 crore in liquidation to Hyderabad based businessman

IVRCL Ltd, the engineering procurement and construction (EPC) company that went into liquidation, is set to be acquired by Hyderabad businessman Ponguleti Prasad Reddy along with consortium members for Rs 1200 crore. This would imply a recovery of 8% for lenders.

IVRCL was pushed into liquidation after lenders rejected two separate resolution plans submitted by Shankar Sharma promoted First Global Finance Pvt Ltd and by Phoenix Asset Reconstruction Company in partnership with Devina Mehra, according to a liquidation order dated July 26, 2019.

Lenders rejected both the plans on technical and commercial grounds even before voting on them, said a person aware of the matter.


The liquidator, Sutanu Sinha backed by BDO India declared Ponguleti Prasad Reddy along with other members, through a special purpose vehicle, as a successful bidder, according to the disclosures made to the stock exchange. The liquidator has issued a demand notice to Reddy who is now required to make full payment within 90-days of issuance of demand notice. Reddy is also the promoter of Hyderabad Raghava Water and Raghava Construction.

According to the request for proposal (RFP), if an EoI applicant deposits Rs 50 crore EMD and the liquidator fails to receive any firm bids on the day of the auction, the EoI applicant would be declared the successful bidder, said one person aware about the matter.

Reddy and the SPV submitted expressions of interest and earnest money deposit (EMD) of Rs 50 crore. However, on 15 December – the day of the auction - the liquidator did not receive any firm bids, according to the exchange notice. Thus, as per the terms of RFP, Reddy was declared a successful bidder, the person said.

The liquidator has admitted financial creditors’ claims of Rs 14491 crore. State Bank of India, Axis Bank, ICICI Bank, Union Bank of India, Acre ARC, Barclays Bank and Life Insurance Corporation are among 23 lenders.

To attract offers, the reserve price was lowered from Rs 1654.47 crore in October 2019 to Rs 1600 crore in July 2021 and Rs 1200 crore in December, the person quoted above said. IVRCL has diversified business in infrastructure segments including irrigation, transportation, power distribution & transmission, operation & maintenance, and mining.