Singapore’s sovereign wealth fund GIC and Cintra, an arm of Spanish infrastructure heavyweight Ferrovial are poised to pick up a substantial minority stake in highway construction firm IRB Infrastructure Developers, multiple industry sources with knowledge of the matter told Moneycontrol.
“ Both these top global investors are planning to separately acquire minority stakes in IRB Infra and the deal discussions are in the final lap,” one of the persons cited above told Moneycontrol
A second person told Moneycontrol that the fund infusion by these investors would be used by IRB Infra to deleverage the balance sheet and for further growth.
“GIC has already participated earlier in the InvIT ( infrastructure investment trust) of IRB Infra and is familiar with the company. For Cintra, which is a toll-road firm, the transaction would help to establish a foothold in India,” said a third person adding that an official announcement on the deal was expected shortly.
All the three persons above spoke to Moneycontrol on the condition of anonymity.
Moneycontrol is awaiting an email response from IRB Infra, GIC, and Ferrovial and has sent reminders. This article will be updated as soon as we hear from the firms.
Incidentally, on October 21, IRB Infra had intimated the stock exchanges that its board of directors would meet on October 26 to consider and approve fundraising plans.
“We hereby inform you that a meeting of the Board of Directors of IRB Infrastructure Developers Limited is scheduled to be held on Tuesday, Oc tober 26, 2021 to also consider and approve, inter alia, a proposal of fundraising by way of issue of equity shares/bonds/ debentures/ non-convertible debt instruments/ securities and/or any other instruments/ any other securities including through preferential issue on a private placement basis, qualified institutions placement, rights issue or any other methods or combination thereof including determination of issue price as may be permitted under applicable laws, subject to such regulatory or statutory approvals as may be required and the approval of the shareholders of the company,” the company had said.
( This is a breaking story and will be updated with more details shortly)
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