Hindustan Dorr Oliver (HDO), subsidiary of infrastructure major IVRCL, is planning to raise funds from the market.
Though the mode is still not finalised, the board of directors has given a go-ahead to raise about $50 million either through preferential issue, qualified institutional placement or other possible combinations.
“We are not in a hurry to raise funds. This is an enabling resolution. But we definitely need funds to ensure that the net worth of the company is strengthened,” IVRCL’s managing
director E Sudhir Reddy told DNA.
According to him, the net worth of HDO is currently at about Rs 200 crore and “it was becoming an issue to raise funds from institutions including banks with low net worth.”
“HDO as a company is doing very well now. But, we need to address the net worth issue too,” he said.
HDO specialises in providing engineered solutions, technologies and EPC installations to liquid-solid separation applications. IT recently acquired UK-based Davy Markham for £9.5 million.
“I think we will not raise the entire approved fund at a go. We will do it in phases,” he said.
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