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