Rs 32,600 crore order book: Multibagger stock under Rs 60 in focus as company secures approval for Ganga Expressway Project through IRB Infrastructure Trust
The stock is up by 59 per cent from its 52-week low of Rs 37.40 per share and has given multibagger returns of 775 per cent in 5 years.
IRB Infrastructure Developers Limited has approved the implementation of the Ganga Expressway Project through its associate, IRB Infrastructure Trust (Private InvIT). This project initially planned to be executed through a joint venture with GIC affiliates, will now be partially implemented by the Private InvIT. Meerut Budaun Expressway Limited (MBEL), a 51:49 joint venture between IRB and GIC, was established on January 5, 2022, to undertake the development of the 129.700 km Ganga Expressway. MBEL contributed 25.47 per cent to the Company's consolidated total income and 4.46 per cent to its net worth in the financial year 2023-24.
The Company is expected to receive approximately Rs 874.61 crore from the Private InvIT for the sale and transfer of 41 per cent equity shares and 41 per cent debentures in MBEL. Additionally, the Company is entitled to receive Rs 6,422 crore (plus applicable taxes) for project management services related to the remaining project implementation. The Private InvIT, an irrevocable trust and a registered infrastructure investment trust, is the buyer in this transaction. The Company, as the Sponsor of the Private InvIT, holds a 51 per cent stake in the trust.
IRB Infrastructure Developers Ltd (IRB) is India’s first Integrated Multi-National Transport Infrastructure Developer in the Roads & Highways segment. The Company has acquired ISO Certification in Quality (ISO 9001); Environment Management (ISO 14001), Occupational Health and Safety (ISO 45001) and IT Security (ISO 27001) from the ISOQAR, United Kingdom. As the largest integrated private toll roads and highways infrastructure developer in India, IRB has an asset base of approx. Rs 80,000 crore in 12 States across the parent company and two InvITs.
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The Company has a strong track record of constructing, tolling, operating, and maintaining around 18,500 Lane Kms pan India in its existence of more than 25 years in India; of which 15,500 Lane Kms are under operation at present. The group commands a market share of around 34 per cent in the TOT space. It also comprises a 12 per cent share of India’s North-South highway connectivity. After completing 13 Concessions and handing over them to the nodal agencies, at present, IRB Group’s project portfolio (including Private and Public InvIT) has now 26 road projects that include 18 BOT, 4 TOT, and 4 HAM projects.
The company has a market cap of over Rs 35,000 crore. As of September 2024, LIC owns a 3.33 per cent stake in the company and has an order book worth Rs 32,600 crore as of September 30, 2024. The stock is up by 59 per cent from its 52-week low of Rs 37.40 per share and has given multibagger returns of 775 per cent in 5 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.