Tuesday, Nov 29, 2022
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IRB Infra Shares Hit 5% Upper Circuit, Bags Rs 5,347 Crore Funding. Should You Buy?

IRB Infra Developers said in a statement said Cintra has invested Rs 3,180 crore through preferential placement, thus holding up to 24.9 per cent stake in the company.

IRB Infrastructure Developers Ltd on Wednesday said it has completed an equity fundraise of Rs 5,347 crore from Cintra INR Investments BV and Bricklayers Investments Pte Ltd.

The company’s share has been locked in 5 per cent upper circuit and is trading at Rs 222.95 on NSE on Wednesday.

The company in a statement said Cintra has invested Rs 3,180 crore through preferential placement, thus holding up to 24.9 per cent stake in the company, whereas, Bricklayers Investment has invested Rs 2,167 crore through preferential issue, holding up to 16.9 per cent stake in the company.

Further, IRB Infra said the Cintra has nominated Jose Tamariz Martel Goncer as a non-retiring additional non-executive director and Carlos Ugarte Cruz Coke as an additional non-executive director on the Board of IRB Infrastructure Developers Ltd.

The statement noted that Virendra D Mhaiskar, the founder promoter of IRB Infra will continue as the promoter and single largest shareholder with 34 per cent holding in the company and will retain the management control.

IRB Infra's Chairman & Managing Director Virendra D. Mhaiskar was quoted by Moneycontrol as saying, “We are confident that with strong financial and strategic support as well as the guidance of our new investors and stakeholders, IRB will excel across its operations and conquer new peaks of success in India’s highways developments sector.

Mhaiskar will continue as the promoter and single-largest shareholder after the completion of the transactions, with an approximate 34 percent stake, and will retain management control of IRB.

Interestingly, on September 30, IIFL had given a buy call on IRB Infrastructure Developers with a target price of Rs 200, according to a report published by The Economic Times.

Moreover, on 21 December, the Competition Commission of India (CCI) has approved the acquisition of up to 16.94 per cent equity share capital of IRB Infrastructure Developers (IRB) by Bricklayers Investment (controlled by GIC Investor), a report in The Hindu said.

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