IVRCL Infrastructures, the parent company of Hindustan Dorr Oliver, is expecting anywhere between Rs600 crore and Rs750 crore for selling out its 55% stake in the company.
IVRCL Infrastructures, the parent company of Hindustan Dorr Oliver, is expecting anywhere between Rs600 crore and Rs750 crore for selling out its 55% stake in the company.
“The current valuation for Hind Dorr is at about Rs1,000 crore and the cost of (55%) acquisition should work out to closer to Rs600 crore. But, IVRCL is working on improving the valuation further,” said a source familiar with the development.
The promoters own 3.98 crore shares of the company, meaning they are looking at an exit price well in excess of Rs150 per share.
The Hindustan Dorr share closed at Rs142 on the Bombay Stock Exchange on Monday, down 4.31%.
IVRCL, it is believed, is currently evaluating certain acquisition targets in Europe and more particularly in countries like Poland to boost valuations.
“There are some target companies that fit the profile of Hind Dorr Oliver and if any such acquisition goes ahead, then the valuation would change significantly. So, the sellout in any case is expected to happen between `600-750 crore,” the source explained.
IVRCL has been indicating that there were plans to sell the subsidiary that has been focusing on engineering, procurement and construction.
Though not revealing details of the progress of the selloff plan, IVRCL has been maintaining that it was not averse to selling the company.
IVRCL bought its stake in 2005 by paying about Rs54 crore.
However, in about five years, the investment has appreciated more than 10 times. There are at least three serious suitors and several unsolicited suitors, the source said.
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