IVRCL Assets Issues Unsecured Redeemable NCD of Rs.100 Crores

IVRCL Assets & Holdings Ltd has announced that, pursuant to Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008, the Company issued 1000 Unsecured Redeemable Non-convertible Debentures of Rs. 10,00,000/- (Rupees Ten Lakhs) each for cash at par aggregating to Rs. 100 Crores, on private placement basis.

The coupon rate of the NCDs is 10.10% p.a. interest payable on quarterly basis. The allotment of the NCDs has been made on June 25, 2010 with a tenor of 18 months and will be listed on National Stock Exchange of India Ltd (NSE).

The Company raised earlier Rs. 150 Crores secured Non-convertible Debentures with a coupon rate of 9.50% p.a. with a tenor of 3 years repayable in two instalments.

The cumulative amount of Rs. 250 Crores raised so far as Non-convertible Debentures (NCD) shall be utilised to part finance the equity in highway and tankage projects under development. The Company intends to utilize diverse options such as Cumulative Convertible Debentures (CCDs), Non-Convertible Debentures (NCDs), internal accruals and sale of some of its land banks as well and Qualified Institutional Placements (QIPs) to meet the equity requirements of the current projects as well new projects that the company intends to bag in the near future.

The funds are being raised to meet the requirements for the business activities of the Company, including downstream investments into infrastructure projects.

The Company has been awarded A+(Ind)(SO) Rating from Fitch Ratings for Rs.100 Crores Non-convertible Debenture Programme.

The stock was trading at Rs.125, down by Rs.1.15 or 0.91%. The stock hit an intraday high of Rs.126.30 and low of Rs.124.05.

The total traded quantity was 4809 as compared to 2 week average of 21341.

Source : Equity Bulls

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