IRB Infrastructure Developers Ltd said on Thursday (March 14) that Cintra, a subsidiary of Spanish construction giant Ferrovial, has agreed to buy a 24% share in IRB Infrastructure Trust from GIC Affiliates.
Ferrovial has officially acknowledged the progress, stating that it will purchase the stake for $810 Million (equivalent to approximately ₹6,720 Crore). IRB Infrastructure Developers mentioned in a regulatory filing that the acquisition’s finalization depends on meeting various conditions, including obtaining necessary regulatory and third-party approvals.
Ferrovial anticipates the transaction to close by the end of April 2024. The transaction price and existing equity obligations will be paid by stock, non-recourse debt, and other financing sources, according to the statement.
“The company will also benefit from the growing EPC and O&M order book as the Trust’s sole project manager,” IRB Infrastructure Developers stated.
IRB Infrastructure Trust is an infrastructure investment trust that is listed on the NSE and registered with SEBI. IRB holds 51% of the trust’s units, with the remaining held by GIC affiliates. The trust manages a portfolio of 15 road projects covering 10,567 lane kilometres.
Since its start in 1998, it has completed about 18,500 lane km of road in India. According to the Ministry of Finance’s National Infrastructure Pipeline report, India’s infrastructure development plans have grown significantly in recent years, with capital expenditures of 240 Billion euros projected for roads and highways between 2020 and 2025.
At around 2.10 PM, IRB Infrastructure Trust was trading 2.14% higher at ₹57.20, against the previous close of ₹56 on NSE. The counter touched an intraday high and low of ₹60.20 and ₹55, respectively.
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