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IRB Infra to raise Rs 5,347 crore from Ferrovial and GIC: Report

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IRB Infra to raise Rs 5,347 crore from Ferrovial and GIC: Report

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Ferrovial will invest through its subsidiary Cintra INR Investments BV up to Rs 3,180 crore for a 24.9 stake in IRB Infra, while GIC will invest up to Rs 2,167 crore for a 16.9 percent stake.

IRB Infra to raise Rs 5,347 crore from Ferrovial and GIC: Report
IRB Infrastructure Developers will raise Rs 5,347 crore from Spanish infrastructure company Ferrovial S.A and an affiliate of Singapore’s sovereign wealth fund GIC through preferential shares allotment, according to an Economic Times report.
Ferrovial will invest through its subsidiary Cintra INR Investments BV up to Rs 3,180 crore for a 24.9 stake in IRB Infra, while GIC will invest up to Rs 2,167 crore for a 16.9 percent stake.
The fundraising will help IRB deleverage its balance sheet and have access to new growth capital to participate in new projects and the government’s ambitious asset monetization plan, the company's founder and Chairman Virendra Mhaiskar told ET.
According to the report, the issue price for both transactions is Rs 211.79 a share, which is at 28 percent discount to the share closing price of Rs 294.40 on BSE on Tuesday. The company’s shares soared since Thursday after the company said it will mull a fundraising plan.
IRB would use Rs 3,250 crore to repay corporate debt, Rs 1,497 crore as growth capital and Rs 600 crore for general corporate purposes from the proceeds of the transactions.
IRB Infra on Tuesday reported a consolidated net profit of Rs 42 crore for the second quarter ending September 30. The company had posted a consolidated loss of Rs 20 crore in the corresponding quarter of the previous fiscal.
Total income during the quarter under review increased to Rs 1,504 crore from Rs 1,169 crore in the year-ago period.
The company said toll collections have witnessed pre-COVID-19 levels across almost all BOT assets, with a meaningful pick-up in economic activity across the country.
-With agency inputs
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