City based infrastructure major IVRCL Infrastructures and Projects Limited is in the process of demerging its intermediary holding companies IVR Strategic Resources and Services Limited and IVRCL Water Infrastructures Limited and amalgamating them with its publicly listed real estate subsidiary IVR Prime Urban Developers.

While IVR Strategic has four build operate transfer road projects under its fold, IVRCL Water holds the asset ownership of one desalination project and a sewage plant in Chennai, which together are worth around INR 1900 crore.

IVRCL holds 62.35% in IVR Prime, while 7% to 8% is held by foreign institutional investors and 14% by the promoters. The rest is with the public. The promoters' holding in IVRCL currently stands at 9%.

Mr E Sudhir Reddy CMD of IVRCL Infra told mediapersons that “We (IVR Prime) are on a sticky wicket and the ball is flying all over our heads. The purpose of the merger is to be among the top three companies in terms of networth holding with about INR 20000 crore assets in the next three years.”

Mr Reddy said the company had appointed six big ticket consultants including Cushman & Wakefield and Enam Securities for the valuation and the reports were expected to be submitted in the next three to four weeks, after which the share swap ratio would be worked out.

(Sourced from Business Standard)