A significant block deal involving 32.85 crore shares or a 5.4 percent equity stake in IRB Infrastructure Developers has caused a stir in the market. The transaction, valued at Rs 2,033 crore, took place on May 30 at a floor price of Rs 65 apiece. Following the block deal, shares of IRB Infra plummeted nearly 10 percent to Rs 63.70 on the National Stock Exchange (NSE).
While the exact parties involved in the transaction are not confirmed, CNBC-TV18, citing sources, reported that IRB Holding Pvt Ltd and Deepali Virendra Mhaiskar are likely sellers in the deal. Jefferies and CLSA India were reportedly the brokers of the block trade. It is suggested that the balance stake after the deal could have a lock-in period of 90 days before Ontario Inc can make any further equity changes.
As per the highway construction company’s March quarter shareholding data, IRB Holding Pvt Ltd held a 33.2 percent stake, and Deepali Virendra Mhaiskar held a 0.27 percent stake. The company reported a 45.1 percent year-on-year jump in net profit at Rs 188.9 crore for the quarter ending March 31, 2024. Revenue from operations also saw a 27.2 percent increase year-on-year to Rs 2,061.2 crore.
In the fiscal fourth quarter, the company’s EBITDA rose by 17.3 percent year-on-year to Rs 889.9 crore. The block deal and its aftermath have definitely had an impact on the overall sentiment towards IRB Infrastructure Developers, and investors will be keeping a close eye on how the situation unfolds in the coming days.
