IRB Infra jumps as investment trust files for IPO

IRB Infrastructure Developers rose 8.42% to Rs 250.45 at 14:40 IST on BSE after an investment trust backed by the company filed a draft offer document with the market regulator for an initial public offer.

The announcement was made during trading hours today, 8 September 2016.

Meanwhile, the BSE Sensex was up 103.63 points, or 0.36%, to 29,029.99.

On BSE, so far 9.59 lakh shares were traded in the counter, compared with average daily volume of 2.24 lakh shares in the past one quarter. The stock hit a high of Rs 253.15 and a low of Rs 230.65 so far during the day. The stock hit a 52-week high of Rs 272.20 on 20 October 2015. The stock hit a 52-week low of Rs 197 on 24 June 2016. The stock had outperformed the market over the past 30 days till 7 September 2016, rising 9.71% compared with 3% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 6.53% as against Sensex's 8.08% rise.

The mid-cap company has equity capital of Rs 351.45 crore. Face value per share is Rs 10.

IRB Infrastructure Developers is the sponsor of the IRB InvIT Fund (the Trust), an infrastructure investment trust registered with the Securities and Exchange Board of India (Sebi).

IRB Infrastructure, a wholly-owned subsidiary of the company and the investment manager to the Trust, has filed a draft offer document dated 7 September 2016, in relation to an initial public offer (IPO) of units representing an undivided beneficial interest in IRB InvIT Fund, with Sebi.

The IPO consists of a fresh issue of units, aggregating up to Rs 4300 crore, by IRB InvIT Fund (the fresh issue), and an offer for sale of units by the company and certain of its subsidiaries, namely Modern Road Makers, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders. The investment manager reserves the option to retain oversubscription of up to 25% of the issue size in accordance with the InvIT Regulations.

Media reports suggested that the proposed IPO will unlock the investment value of IRB Infrastructure subsidiaries and boost the book value of the company.

On a consolidated basis, net profit of IRB Infrastructure Developers rose 10.41% to Rs 181.84 crore on 36.83% rise in net sales to Rs 1517.33 crore in Q1 June 2016 over Q1 June 2015.

IRB Infrastructure Developers is an integrated infrastructure development and construction company with significant experience in toll roads and highways sector. The company is one of the largest private developers in India.

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