Board of Directors of the Company RITES at their Meeting held on 13th November, 2018 has approved in principle to acquire stake of 33% Equity Shares in Indian Railway Station Development Corporation Limited (IRSDC).
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 equity of Rs. 50 Crore initially.
Time period for completion
Within next 3 months i.e. by January 2019 subject to fulfilment of conditions for investment.
Cost of acquisition : Upto Rs. 50 Crore.
Brief background about the entity
IRSDC is a company promoted by RLDA and IRCON to take up the railway Station development s work on Pan India Basis. In coming years about 400 Railway Station.