IRB Infra shares surge 10% on increase in toll tax buzz

IRB reported a consolidated net profit of Rs 188.9 crore marking a 45 percent on-year increase despite weak operating margin.

Shares of IRB Infrastructure Developers leaped over 13 percent to Rs 74.6 on May 3 on reports that the center is likely to increase road toll charges between 3 percent and 5 percent after putting the annual increase on hold in April due to the country's general elections, CNBC TV-18 reported.

The stock has been on a remarkable run, rocketing a massive 75 percent since the start of the year. At about 1:20 am, shares of IRB Infra were trading at Rs 72.7, up 10 percent from the last close on the NSE.

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Last week, a block deal involving 32.85 crore shares or a 5.4 percent equity stake in IRB Infrastructure Developers took place on the bourses. Following the block deal, shares of IRB Infra nosedived nearly 10 percent to Rs 63.70 on the National Stock Exchange (NSE).

While Moneycontrol could not ascertain parties involved in the transaction, CNBC-TV18, citing sources had reported that IRB Holding Pvt Ltd and Deepali Virendra Mhaiskar are likely sellers in the deal.

In the fourth quarter, the infra player reported a 45 percent jump in net profit. IRB reported a consolidated net profit of Rs 188.9 crore marking a 45 percent on-year increase despite weak operating margin. Revenue from operations grew by 27.2 percent YoY to Rs 2,061.2 crore for the quarter.

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