You are here: Home » Markets » News
Business Standard

IRB Infra zooms 16%, stock up 39% in 3 days on plans to raise funds

The company's board meet is scheduled to be held on Tuesday, October 26, 2021 to also consider and approve a proposal of fund raising and also announce September quarter results

Buzzing stocks | IRB Infrastructure  | Market trends

SI Reporter  |  Mumbai 

Road, highways, projects, construction, infrastructure

Shares of Developers (IRB Infra) surged 16 per cent to scale a fresh 3-year high in intra-day trade on Friday. The stock has zoomed as much as 39 per cent in the last three days on the back of company's fund raising plans. The stock of roads & highways construction company was trading at its highest level since May 2018.

At 09:52 AM, IRB Infra was trading 12 per cent higher at Rs 273.15 on the BSE, as compared to 0.58 per cent rise in the S&P BSE Sensex. The trading volume at the counter jumped nearly 1.5 times with a combined 15.8 million shares changing hands on the NSE and BSE.

IRB Infra on Thursday after market hours announced that a meeting of the board of directors of the company is scheduled to be held on Tuesday, October 26, 2021 to also consider and approve a proposal of fund raising.

The proposed fund raising by way of issue of equity shares/ bonds/ debentures/ non-convertible debt instruments/ securities and/or any other instruments/ any other securities including through preferential issue on a private placement basis, qualified institutions placement, rights issue or any other methods or combination thereof including determination of issue price as may be permitted under applicable laws, the company said.

Earlier, on Wednesday, IRB Infra announced that the board will meet on Ocotber 26 to consider and approve the unaudited financial results of the company for the quarter and six months ended September 30, 2021.

Since June 2021, IRB Infra has zoomed 153 per cent after the HDFC Mutual Fund acquired more than 1 per cent stake in the company via open market.

In financial year 2020-21 (FY21) annual report, IRB Infra said that out of the 9 projects in Private InvIT, only 2 projects are under construction – both being 4 to 6 lane assets are expected to witness 55 per cent jump in tariffs on completion – within FY22. This will provide a strong boost in collections and facilitate operations.

“Our order book as on March 31, 2021 has increased to Rs 146 billion, ensuring strong visibility for EPC segment for the foreseeable future, while the net debt to equity ratio remains comfortable at 1.9x. We are well geared to win large number of BOT projects in upcoming bids which will ensure a steady growth in execution as well as our Toll revenues in the long term,” the company said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 22 2021. 10:09 IST