IRB Infrastructure shares drop 13% to hit a 3-week low on large block deal

IRB Infrastructure Developers saw a significant 13% decrease in its share price during today’s intraday trading, hitting a three-week low of ₹63.30 per share. This decline was prompted by a substantial block deal that occurred earlier in the day. Reports indicate that 240 million shares, equivalent to 4% of the company’s total equity, were traded in the block deal window

IRB Holding Pvt. Ltd. and Deepali Virendra Mhaiskar are likely the sellers in the deal. The total offer size represents up to 4% of the company’s equity, with a maximum value of ₹1,512 crore at the lower end of the price band, as reported by CNBC-TV18 on Wednesday.

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The offer price range is set between ₹63.0 and ₹72.7 per equity share, which includes a potential discount of up to 13.3% from the upper price band of ₹72.7 per share. The transaction is being managed by Jefferies India Private Ltd and CLSA India Private Ltd. Additionally, the sellers are subject to a 180-day lock-up period on further share sales, as per the report.

IRB Infrastructure is a leading player in highway construction and infrastructure development in India. With 25 years of experience, the company has built, tolled, operated, and maintained approximately 18,500 lane kilometres across the country, of which 15,500 lane kilometres are currently operational, according to its recent exchange filing.

For the quarter ending in March, the company reported a net profit of ₹189 crore, marking a 45% year-on-year increase from ₹130 crore in the corresponding quarter of FY23. During the same period, the company’s consolidated income grew by 47% year-on-year, reaching ₹2,504 crore in Q4 FY24 compared to ₹1,699 crore in Q4 FY23.

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IRB Infrastructure, along with the IRB Infrastructure Trust (Private InvIT Associate), reported a 24% year-on-year growth in toll collection for FY24, amounting to ₹5,169 crore, up from ₹4,180 crore in FY23.

The company was awarded the TOT-12 (the single largest continuous stretch on NH) and TOT-13 projects in Madhya Pradesh and Rajasthan, making Madhya Pradesh the 12th Indian state where the company operates.

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Tolling commenced on both projects after an upfront payment of ₹6,111 crore as a concession fee to the NHAI. With these additions, IRB Infrastructure’s market share in the TOT space has risen to 38%, the largest by any private player in the sector, the company said in its earnings report.

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