Shares of IRB Infrastructure Developers (IRB Infra) fell over 5 per cent in Thursday’s trade after the company announced the sub-division of equity shares. The company said it will split its shares with a face value of Rs 10 each in the 1:10 ratio.
This means all eligible shareholders of the company will get 10 shares with face value of Re 1 each for every one share they held, as on the record date.
IRB Infra said it would announce the record date in the due course. IRB Infra will complete corporate action on or before February 28, subject to necessary approvals, according to the exchange filing,
The corporate action, though, is subject to the approval from shareholders and related regulatory authorities.
The company said that the corporate action is being taken with an aim to enhance the liquidity and widen shareholder base. It said the stock split will make IRB Infra shares more affordable to small investors.
Following the development, shares of IRB Infra gained during the early trade to Rs 323.65 on Thursday, but they dropped over 5 per cent to Rs 306 level as the session progressed.
IRB Infra has delivered a stellar return of 535 per cent from its Covid-19 low of Rs 51. In the last six months the stock has added 65 per cent, whereas it is up by 40 per cent in a year.
IRB Infra’s special purpose vehicle Udaipur Tollway Limited has raised Rs 700 crore via NCDs and the proceeds would be utilised for part takeout financing of the existing project loans last week.
IRB Infrastructure Developers has been incorporated for more than 25 years and it has been listed for 15 years at Dalal Street before going for a stock split. IRB Infra has approximately 20 per cent share in the Golden Quadrilateral project, which is the largest by any private infrastructure developer in India.
After successfully completing 13 concessions and handing them over to nodal agencies, IIRB Group’s project portfolio (including private and public InvIT) has 22 road projects.
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