IRB Infra's SPV achieves Financial Closure for Gandeva - Ena HAM Project

The VM7 Expressway Pvt. Ltd., a Wholly-owned Subsidiary and an SPV of the IRB Infrastructure Developers Ltd., India's leading and one of the largest highway developers has achieved Financial Closure for its Gandeva - Ena HAM project in Gujarat.

The project is 8 laning of Gandeva - Ena section of 27.500 Kms on the upcoming Vadodara Mumbai Expressway under the Bharatmala Pariyojana (Phase I, Package VII)

While commenting on the development Mr. Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure Developers Ltd. said, "This is our second debt tie-up in the challenging environment caused due to the COVID-19 pandemic outbreak. Six months ago, in a rather tougher environment, we had achieved the financial closure with the single largest debt commitment by any Indian Bank, for our Mumbai Pune Expressway TOT project. Post VM7, we don't have any Financial Closure pending in our portfolio. We are grateful to the lenders for showing continued high trust in our domain expertise, execution capabilities and financial discipline demonstrated over last two decades."

To re-iterate, IRB Infra had bagged the project under Hybrid Annuity Model (HAM) in July 2020 and had executed the Concession Agreement with NHAI in September 2020.

The highlights of the Project and Financial Closure:

- Project is under Bharatmala Pariyojana Phase I, Package VII, 8 Laning of 27.500 Kms stretch between Gandeva and Ena on the upcoming Vadodara - Mumbai Expressway.

- The project concession will comprise 730 days for construction and 15 years for operations and maintenance thereafter.

- Project involves a grant of Rs. 702 Crores from NHAI, equity of Rs. 253 Crores from the Company and Project Financing of Rs. 747 Crores from the lenders.

Shares of IRB INFRASTRUCTURE DEVELOPERS LTD. was last trading in BSE at Rs.113.85 as compared to the previous close of Rs. 115.8. The total number of shares traded during the day was 22053 in over 344 trades.

The stock hit an intraday high of Rs. 117 and intraday low of 113.1. The net turnover during the day was Rs. 2539278.

Source : Equity Bulls

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