IRB Infrastructure Developers Ltd ("the Company" or "IRB") have received NOC from NHAI for transfer of nine BOT assets to IRB Infrastructure Trust ("the Trust") and subsequent investment by GIC affiliates for 49% stake in the Trust. SEBI has already granted the Certificate of Registration in tenns of Regulation 6 of SEBI (Infrastructure Investment Trusts) Regulations, 2014 to the Trust, to which the Company is a Sponsor, to cany out the activities as an INVIT, subject to the conditions specified in the SEBI Act, 1992 and the Regulations made thereunder.
Further, 98% of company's lenders have approved their NOCs supporting the deal and we expect to close the balance shortly.
Earlier, in August 2019, the company had announced signing definitive agreements with GIC affiliates, for an investment upto Rs 4,400cr - amounting to 49% stake in a portfolio of 9 of its assets through Private InvIT structure (viz IRB Infrastructure Trust), while IRB retains controlling stake of 51% in the Trust. The Portfolio spans across c.1,200 kms in Haryana, Uttar Pradesh, Rajasthan & Gujarat, Maharashtra and Karnataka. Three of these projects are operational and balance six are under various stages of construction. Five of the assets under construction are 4 to 6 laning projects, where tolling as well as construction has already begun. These projects are strategically located along economic conidors and across tourist hubs.
The Investment proceeds from the deal will be used for:
- Part deleveraging of the Portfolio, and
- Equity funding for under construction projects of the Portfolio
As the Project Manager for the Trust, IRB will execute the balance construction and O&M for the Portfolio. GIC will also hold 49% in the Investment Manager (IM) entity to manage the Trust.
This transaction will significantly deleverage the said portfolio, and give IRB material equity support for construction completion, enhancing its project execution capabilities and increasing visibility for its EPC and O&M order book.
Shares of IRB INFRASTRUCTURE DEVELOPERS LTD. was last trading in BSE at Rs.77.2 as compared to the previous close of Rs. 74.9. The total number of shares traded during the day was 310897 in over 2745 trades.
The stock hit an intraday high of Rs. 79.45 and intraday low of 75. The net turnover during the day was Rs. 24178129.