Shares of IRB surge on receiving first investment tranche by GIC

The country’s largest road construction company, IRB Infrastructure Developers, today announced that it has received first tranche of investment from GIC affiliates of Rs 3,753 crore, the company informed through a press release filed to the stock exchanges.

The company in its FY19 annual reports had mentioned about investment by GIC (Singapore's sovereign fund) of Rs 4,400 crore. GIC had signed definitive agreements to partner with IRB in its current portfolio for nearly nine BOT based projects for 49 per cent stake, via a private Infrastructure Investment Trust (InvIT) structure. The investment is aimed at using proceeds to be used in deleveraging the portfolio and funding for under-construction projects.

As per the agreement, IRB has received the first tranche of this investment. The remaining funding as per the commitment with GIC is expected to come, depending on the progress of construction of the currently undergoing projects. The press note further added that the allotment of units to the investors will take place by February 27, 2020. After the stated allotment, the company will hold 51 per cent and GIC affiliates will hold 49 per cent stake in the Private InvIT.

Shares of IRB Infra surged higher by nearly three per cent in the early trade in Monday to touch an intra-day high of Rs 96.75 on BSE. At 9.35 am, the stock was trading at Rs 95 per share with gains of 1.77 per cent.