IVRCL Assets surges 20% on merger news

IVRCL board has approved merger of IVRCL Assets and Holdings with the company, reports CNBC-TV18.

Promoters are holding 83% stake in IVRCL Assets and 11% in IVRCL.

IVRCL Ltd has informed BSE that the Board of Directors of IVRCL Ltd and IVRCL Assets & Holdings Ltd (IVRCL A & H) at the respective meetings held on October 31, 2011, inter alia, have accorded in-principle consent to pursue, subject to acceptance of a fair share swap ratio and other commercial matters relating thereto by the respective Board of Directors, receipt of approvals from requisite statutory and regulatory authorities, the shareholders of the Companies, the High Court of judicature, Andhra Pradesh, the proposal for amalgamation of IVRCL Assets & Holdings Ltd. with the Company and for demerger of the Manufacturing Factory of the company into an SPV and also the real estate activity of IVRCL, A & H into a separate subsidiary Company.

The Boards intend to meet again to consider the terms of the proposed amalgamation including the share swap ratio after receipt of the valuation report, the fairness opinion and the draft Scheme of Amalgamation and any other matter as required.

In this connection the Board approved appointment of required agencies i.e. legal advisors, merchant bankers and advisors to determine the share swap ratio and to obtain fairness opinion on the share swap ratio

IVRCL Assets and Holdings touched an intraday high of Rs 37.00 and an intraday low of Rs 31.15. At 13:52 hrs the share was quoting at Rs 37.00, up Rs 6.15, or 19.94%.
 
There were pending buy orders of 29,565 shares, with no sellers available. It was trading with volumes of 97,387 shares, compared to its 5-day average of 7,010 shares, an increase of 1,289.26%.
 
In the previous trading session, the share closed up 3.01% or Rs 0.90 at Rs 30.85.

However, IVRCL was quoting at Rs 41.75, up Rs 1.20, or 2.96%.