IRB Infra subsidiary allots redeemable debentures worth Rs 700 crore to investors

Udaipur Tollway Limited, the Special Purpose Vehicle (SPV) of IRB Infrastructure Developers Limited under its Private InvIT arm, IRB Infrastructure Trust, has allotted the redeemable non-convertible debentures aggregating to Rs 700 crore to eligible investors on private placement basis.

The company said that the proceeds received from nonconvertible debentures would be used to refinance the project through part repayment of existing project debts, at lower interest cost, which would bring huge interest saving over project life.

“With a focus on enhancing returns to our investors, the company has been exploring avenues to refinance its completed projects. Part refinancing exercise completed for our Udaipur Shamlaji BOT asset in Rajasthan is the next spoke of this strategy," the company spokesperson said in a release.

Earlier in the quarter, the company had re-financed its two SPVs under the Private InvIT arm (through private placement of listed NCDs), Solapur Yedeshi Tollway Limited and Yedeshi Aurangabad Tollway Limited. This involved fixing rates for at least 5 years at optimized cost and amortization; thus, resulting in incremental surplus cash generation of around Rs 500 crore over following 5 years and further achieving rating improvement to AAA for these assets, which is a first for any BOT Asset in India.

Shares of IRB Infrastructure Developers closed 0.93 per cent lower at Rs 288.15 on the NSE on Thursday. The highway construction company has yielded a whopping 42 per cent in the past 6 months, resulting in wealth gain for investors. YTD, it has advanced 30 per cent. The 52-week range is Rs 329.40 - Rs 178.90.

IRB Infrastructure has an asset base of over Rs 60,000 crore in 10 states.