IVRCL's toll gets rolling

IVRCL has been hogging quite a bit of the limelight for the past two days. Yesterday, the stock breached the upper circuit at Rs.9.75 and today, intra day it has gone up over 14% to Rs.10.85. Volumes are up over two times.

The stock is up on news that IVRCL Chengapalli Tollways Ltd. [ICTL], a Special Purpose Vehicle (SPV) formed by IVRCL Ltd for implementing the project, has begun collection of toll. This is one of the projects , coming under BOT, under National Highway Development Programme (NHDP) Phase-III B and envisages 4/6 laning of the road in Chengapalli–Coimbatore–Walayar on the Tamil Nadu and Kerala border under several sections of national highway (NH)-47 in Tamil Nadu.

The company has announced that it has received provisional certificate for commercial operation and the toll collection started from Wednesday (October 14, 2015).  This is one of the projects out of 3 projects which the company entered into a share purchase agreement with TRIL, a Tata group infrastructure company. All the three roadways are located in Tamil Nadu.

On the other hand, under the Corporate Debt Restructuring (CDR) scheme, it allotted 1.5 crore equity shares of Rs.2 each at issue price of Rs.24.39 to International Asset Reconstruction Company Pvt Ltd (a Corporate Debt Restructure lender) who had inked the master restructuring agreement when the loans were recast.  This allotment is to facilitate conversion of Fixed Interest Term Loan into equity, for the period of December 1, 2013 to August 31, 2015.