📷 Image Credits: CNBCTV18
IRB Infra, a leading transport infrastructure developer in India, recently witnessed a significant block deal involving a substantial change in ownership. On June 11, around 41.20 crore shares of IRB Infrastructure Developers, representing a 6.8 percent stake in the company, changed hands in two block deals. The transaction, executed at an average price of Rs 64.40 apiece, amounted to a total of Rs 2,656 crore. Moneycontrol reported that they could not immediately identify the parties involved in the transaction, but it was disclosed on June 10 that Cintra, an affiliate of Dutch infrastructure major Ferrovial, was looking to sell around 5 percent stake in IRB Infra through a block deal to raise approximately $228 million.
Following the completion of the deal, a lock-in period of 150 days was triggered before Cintra could proceed with any additional block deals to offload more stake in the infrastructure company. Cintra previously held a 24.86 percent stake in IRB Infra based on the company’s latest shareholding data, updated at the end of the March quarter of FY24. It was reported that HSBC and Jefferies were the investment banks working on the deal.
After the block deal, shares of IRB Infra experienced a sharp decline of around 10 percent and were trading at Rs 64.74 on the NSE at 09.36 am. Despite the temporary setback, the company has been performing well in the market, with its stock price soaring due to an increase in toll tariffs and the anticipation of continued infrastructural development under Modi 3.0. In 2024, IRB Infra has delivered impressive returns of close to 70 percent year-to-date.
Moreover, IRB Infra reported a 30 percent year-on-year growth in toll collections, amounting to Rs 536 crore in May. The management is optimistic about the future, expecting a further uptick in toll collections driven by the recent increase in toll tariffs, effective from early June. This development indicates a positive outlook for the company’s growth trajectory and underscores investor confidence in its long-term prospects.
