Subhash Chandra-controlled Essel group has recently acquired 10.19 per cent stake in IVRCL in an open market transaction on Tuesday and has indicated that it might pick up more stake in the company, according to sources.

Promoters of IVRCL have said that they are not willing to sell stake in the company and so the Essel's interest might result in an hostile takeover of the firm. Essel Group officially owns about 10% stake in IVRCL but according to estimates, it owns between 13 per cent and 20 per cent in the company.

The promoters of the company held 11.2% stake in IVRCL as on December 2011. According to experts, if the Essel group increases its stake in the company if might emerge as the dingle largest domestic shareholder in the company.

Bank of America has said that if Essel increases its stake in IVRCL, it would result in a hike in share prices above its fundamental fair value on strategic premium. On the other hand, experts warn that group's limited experience in the construction business could impact IVRCL's earnings estimates.