IRB Infrastructure Developers’ shares extended gains on Friday as its subsidiary raised Rs 700 crore via allotment of redeemable non-convertible debentures (NCDs).
Udaipur Tollway Limited (UTL), the Special Purpose Vehicle of IRB Infrastructure Developers has allotted unlisted, rated, redeemable non-convertible debentures aggregating to Rs 700 crore on a private placement basis to eligible investors, Thursday, December 29, 2022, the company said in a regulatory filing.
“The proceeds from the NCDs from refinancing would be utilized for part takeout financing of the Existing Project Loans obtained and provide significant savings of over Rs 10 crore annually at revised interest cost of about 8.9 per cent,” the filing added.
On Friday, the stock advanced 3 per cent to Rs 295.75. Shares of IRB Infra have gained about 45% in the last six months, whereas the stock has risen 30% in the last one year.
With a focus on enhancing returns to our investors, the company has been exploring avenues to refinance its completed projects. Part refinancing exercise completed for Udaipur Shamlaji BOT asset in Rajasthan, said the company’s spokesperson in the media statement.
тАЬThe proceeds received from these nonconvertible debentures would be used to refinance the said project through part┬аrepayment of existing project debts, at lower interest cost, which would bring huge interest savings over project life,тАЭ he added further.
IRB Infrastructure Developers is IndiaтАЩs first multinational infrastructure player in the Highways segment. It has an asset base of more than Rs 60,000 crore in 10 states across the parent company and two InvITs.
Earlier this month, the company announced that its board is scheduled to meet on January 4, 2023 to consider the proposal for the sub-division/split of the equity shares having a face value of Rs 10 each.
Kotak Securities has a ‘buy’ rating on IRB Infrastructure with a target price of Rs 340, suggesting an upside of 18% in the stock as it sees a strong visibility of revenue with an order book of Rs 20,000 crore, adjusted with GST.
The EPC arm of the company is better placed than its peers on a strong order book, despite weak inflows so far from NHAI, it said. “We expect consolidated debt to come from current levels on debt repayment and new projects being taken under private InVIT.”
Also Read:┬аAdani Enterprises, Adani Total Gas, ITC, SBI, ICICI Bank: 5 stocks that added more m-cap than RIL in 2022
