IVRCL share price crashes after flyover mishap in Kolkata
According to a report by Moneycontrol, the shares of IVRCL saw a dip of 11 per cent on Thursday. The stock prices of IVRCL had steadily fallen over the past few year.
The company was awarded the construction contract in the year 2009 with a budget of Rs 164 crore and a deadline of 18-months, since then the company has missed eight deadlines
According to a report by Business Standard, in the past few years the company has faced liquidity problems due to increasing debt and depleting profits. It had accumulated a debt of Rs 10,000 crore on top of net loss of close to Rs 2,000 crore by the end of second quarter of 2016.
The company underwent a debt restructuring process in March 2016. Banks who were part of this process were allotted 18,19,60,413 equity shares of Rs 2 each, at a price of Rs 8.76 per share. The allocation was made under the guidelines of the RBI Circular on Strategic Debt Restructure, according to a report by The Hindu Business Line.
According to the official website of the 25 year old company, the company has been involved in various projects related to water and environment, transportation, buildings and industrial structures, power transmission projects and mining.
Previously the company has undertaken construction of several flyovers and bridges in cities like Chennai, Kondalampatti, Amritsar, Chengapalli, Bagalkote and Palasa.
Rail over bridge at Perambur in Chennai. Their client for this project is the Corporation of Chennai, Bridges department.
Design, construction, development, finance, operation and maintenance of major interchange at Kondalampatti on NH-47 as part of four-laning of Salem to Kumarapalayam Section in Tamil Nadu. Their client for this project is National Highways Authority of India.
Construction of a major bridge across the river Baes on NH-1 as part of the laning of the Jalandhar-Amritsar section. The client for the project is the National Highways Authority of India.
Construction of a road over bridge at Palasa in lieu of existing Visakhapatnam-Bhuveaneshwar road in Srikulam District, the client for which is the Superintending Engineer (R&B) Circle, Srikakulam.
Major bridge across the river Cauvery on NH-47 as part of laning of Kumarapalayam to Chengapalli section in Tamil Nadu, for which the client is National Highways Authority of India.
Construction of a bridge across the river Krishna of Jamkhandi Savalgi road near Jambagi village in Jamkhandi Taluk, Bagalkote District, client for which is the Karnataka Road Development Corporation Limited.
In a statement issued by the company today morning, it has claimed that such an incident has occurred for the first time in the company’s history. The flyover had 59 sections with a total length of about 0.9km was completed. The 60th section had collapsed. The company looks forward to investigate the cause of the accident.
The under construction flyover in Ganesh Talkies area of Kolkata collapsed on Thursday, crushing 22 people and injuring 78.
(Reporting by Adit Majumder)
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