IRB Infrastructure Developers share price gained 9 percent intraday on February 25 after the company trust received first tranche of investment from GIC affiliates.
"IRB announced receipt of the first tranche of the investment of Rs 3,753 crore from GIC affiliates out of its commitment of Rs 4,400 crore by IRB Infrastructure Trust," the road developer said in its BSE filing.
The balance commitment will be invested on the progress of construction of the under-construction projects, it added.
IRB said the allotment of units to the investors would happen by February 27, 2020.
Post the allotment of units, IRB will hold 51 percent and GIC affiliates will hold 49 percent stake in the private InvIT.
The net revenue of the portfolio in FY19 was Rs 630 crore. "Upon completion of construction of the nine BOT assets, the enterprise value of the private InvIT will be Rs 22,500 crore," the company said.
As part of the transaction, IRB will transfer nine of its BOT assets (portfolio) into a Private InvIT in which IRB will hold a controlling stake of 51 percent.
The portfolio spans across 5,900-lane kms in Haryana, Uttar Pradesh, Rajasthan and Gujarat, Maharashtra and Karnataka.
"All nine assets in the portfolio are revenue generating assets. The investment proceeds will be used for deleveraging the portfolio and for equity funding for underconstruction projects," IRB said.The stock was quoting at Rs 97.95, up Rs 4.60, or 4.93 percent, on the BSE at 1506 hours.