IRB Infra board approves Rs 2,500 crore fundraising plan

The country’s largest road construction company, IRB Infrastructure Developers Ltd announced that its board has approved a fundraising plan of up to Rs 2,500 crore.

This fundraising has been done majorly to meet the ongoing and planned capex requirements and cash flow mismatches of the company as well as for the general corporate purposes, in the wake of COVID-19, arising from the impact of the lockdown.

Looking at the recent developments, the company has closed the largest deal of around Rs 4,400 crore with GIC Affiliates (Singapore) towards the investment of company’s nine build-operate-transfer (BOT) assets under Private InvIT structure. Further, the company has secured 10-years tolling contract for Mumbai-Pune Expressway amounting to Rs 8,200 crore.

Also, in-line with the guidelines by NHAI on COVID-19, the company has resumed toll operations and construction activities across India.

IRB Group’s portfolio comprises of 21 projects including 19 BOT, one TOT and one HAM project. The company’s order book as on December 31, 2019 stood at ~Rs 6,800 crore.

In today’s trading session, the stock of IRB Infra gained nearly 7 per cent in the early trade and made an intraday high of Rs 77.80 on BSE. At 10:07, the stock was trading at Rs 76.15 on BSE.