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IRB Infrastructure completes raising Rs 5,347 crore via preferential issue of shares

As part of the fundraiser, Ferrovial subsidiary Cintra Global SE will invest equity capital of up to Rs 3,180 crore for a 24.9 percent stake in the company, while GIC will invest equity capital of up to Rs 2,167 crore for a 16.9 percent stake.

December 29, 2021 / 04:54 PM IST
Representative image

Representative image


IRB Infrastructure Developers on December 29 completed the equity fundraise to raise Rs 5,347 crore through preferential allotment of shares to a subsidiary of Ferrovial S.A and an affiliate of Singapore’s sovereign wealth fund GIC, the highway construction firm said in a press release.


As part of the fundraiser, Spanish infrastructure company Ferrovial's subsidiary Cintra Global SE will invest equity capital of up to Rs 3,180 crore for a 24.9 percent stake in the company, while GIC will invest equity capital of up to Rs 2,167 crore for a 16.9 percent stake, IRB Infra said.


The issue price for both transactions was set at Rs 211.79 a share.


IRB Infra had announced the fundraiser in October and will use the proceeds from the same to deleverage its balance sheet and have access to new growth capital.


“We are confident that with strong financial and strategic support as well as the guidance of our new investors and stakeholders, IRB will excel across its operations and conquer new peaks of success in India’s highways developments sector," IRB Infra's Chairman & Managing Director Virendra D. Mhaiskar said.

Mhaiskar will continue as the promoter and single-largest shareholder after the completion of the transactions, with an approximate 34 percent stake, and will retain management control of IRB, the company said in a statement.

From the proceeds of the transactions, IRB would use Rs 3,250 crore to repay corporate debt, Rs 1,497 crore as growth capital and Rs 600 crore for general corporate purposes.

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