The board approved raising up to Rs 5,347 crore by issuing 252.45 million equity shares through the preferential issue on a private placement basis. However, the issue price for the preferential allotment is Rs 211.79 per share, a 28 per cent discount to Tuesday’s closing price of Rs 294.40 on the BSE.
Following the update, shares of IRB Infrastructure hit a 10 per cent lower circuit limit to Rs 265. BSE Sensex was trading at 61,465.26, up 115 points or 0.19 per cent at the time of writing this report.
IRB Infra announced two separate equity fundraise through preferential allotments to Cintra, an arm of Spanish infrastructure major Ferrovial and Singapore’s GIC. According to the deal details, Cintra would invest equity capital of up to Rs 3,180 crore and will have a maximum stake of 24.9 per cent in IRB post-investment.
Santosh Meena, Head of Research, Swastika Investmart said IRB infra witnessing profit booking after a stellar rally in October.
“Infrastructure sector is showing a turnaround, however, IRB infra outperformed, backed by positives like strong Q2 earnings and fundraising but most of these triggers are discounted in the price,” he added.
Virendra Mhaiskar, the founder of IRB, will continue as a promoter and the largest investor after completing the transactions, with approximately 34 per cent stake and will retain management control of IRB, the company said in a statement.
The fundraising will help it pare debt and participate in the government’s massive infrastructure development and monetization plan, IRB said.
