IRB Infrastructure on Sunday said its board has approved raising up to Rs 2,500 crore to fund ongoing and planned Capex and for general corporate purposes in the wake of lockdown due to COVID-19 pandemic.
The infrastructure company said that the funds will be raised through appropriate instruments in one or more tranches.
The Board of Directors of IRB Infrastructure Developers Ltd today approved fundraising of up to Rs 2,500 crore to meet ongoing and planned CAPEX requirements and cash flow mismatches of the company as well as for general corporate purposes in wake of COVID-19, the company said in a statement.
IRB Infrastructure Developers Ltd Chairman & Managing Director Virendra D Mhaiskar said, "We plan to use these funds to meet payments to creditors, firmed up project expenses as well as the general corporate purposes, during the ongoing lockdown situation due to COVID-19."
He further added, "In view of company's track record of more than last 20 years, in-house capabilities, rich domain expertise and experience, we do not see any difficulty in raising money."
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The board approved fundraising through appropriate instruments, permitted under the applicable statute, in one or more tranches/series to the eligible investors, who are allowed to invest in or subscribe to such instruments.
The company said the Management Administration and Share Transfer Committee (MAS Committee) of the board is authorized to take all necessary actions in this regard.
IRB Infra had recently closed a deal of around Rs 4,400 crore with GIC Affiliates, Singapore towards investment in company's nine BOT (build, operate, transfer) assets under private InvIT (Infrastructure Investment Trust) structure.
The company had bagged Rs 8,200-crore Mumbai-Pune Expressway project under TOT (toll, operate and transfer) and commissioned Goa–Kundapura BOT project, thus making all projects revenue generating, besides resuming toll operations and construction activities across India in line with the guidelines by NHAI on COVID-19.
IRB Infra is one of the largest private roads and highways infrastructure developers in India having a track record of constructing over 12,600 lane km in two decades.The company has executed projects pan-India with an ability to construct over 500 km in a year.