RITES Limited To Acquire 33.33% Stake In IRSDC
RITES Limited has informed that the board of directors of the company at its meeting has approved in principle to acquire stake of 33% Equity Shares in Indian Railway Station Development Corporation Limited (IRSDC).
1. Industry to which the entity being acquired belongs: Infrastructure Development.
2. Objects and effects of acquisition: To infuse funds upto Rs. 50 Crores in Indian Railway Stations Development Corporation Limited(lRSDC) for its station development plans; RITES Limited along with the existing promoters of IRSDC on 25.09.2018 at a meeting chaired by Member Engineering, Railway Board has agreed to invest fresh Equity Share Capital of Rs. 50 Crore in one or more tranches, subject to fulfilment of certain conditions. IRSDC vide its letter dated 18.10.2018 requested RITES to invest in the equity of Rs. 50 Crore initially.
3. The indicative time period for completion of the acquisition: Within next 3 months i.e. by January 2019 subject to fulfilment of conditions for investment.
4. Background about IRSDC: IRSDC is a company promoted by RLDA and IRCON to take up the Railway Station development work on Pan India Basis. In coming years about 400 Railway Station along with associated land monetisation is to be taken up by IRSDC.