**IVRCL Limited** is a prominent Indian infrastructure development company currently undergoing **Liquidation as a Going Concern** under the **Insolvency and Bankruptcy Code (IBC), 2016**. Historically a leader in **Engineering, Procurement, Construction and Commissioning (EPCC)** and **Lump Sum Turn Key (LSTK)** projects, the company is presently in a transitional state, maintaining operations to preserve technical pre-qualifications while awaiting a change in management through the National Company Law Tribunal (NCLT) process. --- ### 1. Current Corporate Status: Liquidation as a Going Concern Since **July 26, 2019**, IVRCL has been managed by a **Liquidator** following orders from the NCLT. Unlike a standard liquidation, the "Going Concern" status allows the company to continue operations to maximize value for a potential buyer. * **Operational Mandate:** The company continues to execute "in-hand" orders and provide **Operations & Maintenance (O&M)** services. * **New Business Constraints:** No new contracts were secured during **FY 2023-24** or **FY 2024-25** due to the legal status and severe liquidity constraints. * **Stock Status:** Trading in equity shares on the **NSE and BSE** has been suspended since **September 3, 2019**. * **Governance:** The powers of the Board of Directors remain suspended. A **Supervisory Committee**—comprising the Liquidator and stakeholders—oversees business protection. --- ### 2. Core Infrastructure Verticals & Asset Portfolio IVRCL’s business is concentrated in the **Engineering & Construction** segment, with a diverse portfolio of infrastructure assets and technical expertise. * **Water & Environmental:** Includes large-scale water supply schemes and desalination plants, notably **Chennai Water Desalination Ltd.** * **Transportation:** Development of roads, bridges, and tollways, primarily executed through Special Purpose Vehicles (SPVs). * **Buildings & Industrial:** Construction of integrated townships and industrial structures. * **Power:** Infrastructure for power transmission and distribution. * **Manufacturing:** A dedicated facility located in **Nagpur, Maharashtra**. * **Land Assets:** The company holds significant land parcels (e.g., **23.17 acres** and **14.82 acres**), though these are currently mortgaged as collateral to lenders. --- ### 3. The Sale Process and Acquisition Deadlock The company’s future hinges on the completion of a sale to a new promoter group. However, this process has encountered significant legal and financial delays. | Event / Milestone | Details | | :--- | :--- | | **Auction Date** | **December 15, 2021** (Third E-auction) | | **Successful Bidder** | Consortium led by **Mr. Ponguleti Prasad Reddy** (**M/s Raghava Square Pvt Ltd**) | | **Total Bid Value** | **₹1,200 Crore** | | **Reserve Price** | **₹1,200 Crore** | | **Current Status** | **Default on Payment Tranches**; Matter under appeal at NCLAT | | **Liquidation Deadline** | Extended to **February 14, 2025** | **Payment Default Summary:** The bidder was required to pay the balance **₹1,150 Crore** in six tranches starting August 2022. As of late 2025, only **₹100 Crore** of the first tranche has been paid. This has led to a legal deadlock, with the Liquidator seeking to cancel the bid and the bidder seeking further extensions. --- ### 4. Financial Performance and Debt Profile The company’s financial position is characterized by total net worth erosion and massive debt obligations. **Key Financial Metrics (Standalone):** | Metric | FY 2024-25 (Annual) | H1 FY 2025-26 (Sept 30, 2025) | | :--- | :--- | :--- | | **Gross Turnover** | **₹7.98 Crore** | *Minimal/Not Specified* | | **Net Loss** | **₹3,075.68 Crore** | **₹9,026.06 Crore** (Quarterly) | | **Accumulated Losses** | **₹20,539.09 Crore** | **₹22,293.68 Crore** | | **Finance Cost** | **₹3,063.78 Crore** | **₹1,741.25 Crore** (6 Months) | **Debt Obligations (as of Sept 2025):** * **Fund-based Borrowings:** **₹23,924.94 Crore** (including interest). * **Non-fund based Exposure:** **₹343.46 Crore**. * **Priority Debt:** **₹122.65 Crore** availed out of a **₹175 Crore** sanction to maintain operations. --- ### 5. Subsidiary Network and Joint Arrangements IVRCL operates through an extensive network of **26 direct subsidiaries**, **3 associates**, and **32 joint ventures**. Many of these entities are in various stages of financial distress or legal dispute. | Subsidiary/JV Entity | Status / Risk Factor | | :--- | :--- | | **IVRCL Chengapalli Tollways** | Ceased to be subsidiary (May 2023); faces **₹389.21 Crore** NHAI demand. | | **Hindustan Dorr Oliver** | Under liquidation since **2021-22**. | | **Jalandhar Amritsar Tollways** | Loan accounts classified as **NPA**; loans recalled by Canara Bank. | | **Salem Tollways** | Concession agreement terminated by **NHAI** in Nov 2020. | | **IVR Hotels and Resorts** | Subject to recovery proceedings under the **SARFAESI Act**. | | **International Assets** | **USD 1.83 Million** trapped in Azizi Bank, Kabul, due to political instability. | --- ### 6. Critical Risks and Audit Disclaimers Investors and stakeholders should note that auditors have consistently issued a **Disclaimer of Opinion** regarding the company’s financial statements. * **Material Uncertainty:** There is significant doubt regarding the "Going Concern" assumption if the sale to the successful bidder is not finalized. * **Asset Recoverability:** **₹1,585.18 Crore** in trade receivables and **₹1,830.41 Crore** in subsidiary investments are under litigation or arbitration with low clarity on recovery. * **Tax and Statutory Liabilities:** * **GST Demands:** **₹254.36 Crore** outstanding; registrations in Karnataka and Rajasthan are suspended. * **Income Tax:** Prosecution initiated for failure to deposit TDS (**₹29.25 Crore** across two years). * **Operational Decay:** Prolonged liquidation has led to the lapse of many technical pre-qualifications, diminishing the company's competitive edge in the EPC market. * **Compliance Lapses:** The company currently lacks a **CFO**, **Company Secretary**, and **Internal Auditor**, leading to delays in SEBI and statutory disclosures. --- ### 7. Strategic Outlook The company’s primary objective is to transition management to **M/s Raghava Square Private Limited** or an alternative bidder. The long-term goal is to re-enter the **Civil & Contracting** sector to capitalize on the Indian government's **₹100 Lac Crore** infrastructure investment target. However, this is entirely contingent on resolving the current payment defaults and securing NCLT approval for the final transfer of the business.