IRB Infra up 4% as it emerges preferred bidder for Rs 2,132 cr BOT project

The company has fixed Wednesday, February 22, 2023 as the 'Record Date' for the purpose of determining the eligibility of shareholders for the purpose of sub-division /split in the ratio of 1:10.

Shares of IRB Infrastructure rallied 4 per cent to Rs 295.25 in Tuesday’s intra-day trade, after the company emerged as a preferred bidder for Rs 2,132 crore built-operate-transfer (BOT) project in Gujarat.

The project, with Concession Period of 20 years from the Appointed Date, is a six-lane 90.9 kilometers stretch between Samakhiyali to Santalpur.

Upon award of this project, the company’s order book will stand revised to around Rs 20,892 crore (excluding GST), which includes construction order book of Rs 9,714 crore, which would provide strong visibility for next ~2.5 years.

IRB is India’s first multinational infrastructure player in the highways segment. As the largest integrated private toll roads and highways infrastructure developer in India, this win would expand IRB group’s asset base to over Rs 62,000 crore spread in 10 states across the parent company and two InvITs.

The company has strong track record of construction, tolling, operating, and maintaining around 15,500 lane kilometers pan India and has an ability to construct over 500 kilometers in a year. It has around 20 per cent share in India’s prestigious Golden Quadrilateral project, which is the largest by any private infrastructure developer in India.

Meanwhile, the stock of IRB will go ex-stock split in the ratio of 1:10 on Wednesday, February 22. The company fixed February 22, 2023 as the ‘Record Date’ to determine eligibility of shareholders for sub-division /split of every 1 equity share having face value of Rs 10 each, fully paid-up into 10 equity shares having face value of Re 1 each fully paid-up.

"The rationale behind the stock split is to enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors," the company said.