IRB Infrastructure receives NOC for transfer of BOT assets

On Sunday, IRB Infrastructure informed the bourses that it has no objection certificate (NOC) from NHAI for transfer of nine of its BOT assets to IRB Infrastructure Trust and subsequent investment by GIC affiliates for 49 per cent stake in the Trust.

Besides, the company in its exchange filing also said that almost 98 per cent of its lenders have approved their NOCs supporting the deal and the company expects to close the balance shortly.

During, August 2019, the company had entered into definitive agreements with GIC affiliates, for an investment up to Rs 4,400 crore for nearly 49 per cent stake in a portfolio of 9 of its assets through Private InvIT structure (viz IRB Infrastructure Trust) while IRB retains controlling stake of 51 per cent in the Trust.

The Portfolio spans across 1,200 km in Haryana, Uttar Pradesh, Rajasthan and Gujarat, Maharashtra, and Karnataka. Out of these 9 projects, 3 projects are operational and the remaining 6 are under construction stage.

The company is likely to use the proceeds from this transaction to reduce the debt. Further, with this proceeding, the company can infuse adequate equity into existing projects to ramp up executions.

With the broad market selling pressure, the stock of IRB too was trading in negative terrain. The stock which opened at Rs 79.40 the stock plunged nearly 3.5 per cent to touch an intra-day low of Rs 74.5.