Multibagger stock IRB Infra to raise Rs 700 crore via NCD

Multibagger stock IRB Infra, which has risen over 450% in three years, under its private InvIT arm allotted redeemable non-convertible debentures of Rs 700 crore to eligible investors.

“Continuing with our effort of return enhancement through refinancing of completed projects, this is to inform you that another subsidiary of IRB Infrastructure Trust (sponsored by IRB Infrastructure Developers Limited) – Udaipur Tollway Limited (UTL), has allotted unlisted, rated, redeemable nonconvertible debentures aggregating to Rs 700 crores on a private placement basis,” the company said in a BSE filing.

The NCD proceeds from refinancing would be utilized for part takeout financing of the existing project loans obtained and provide a significant saving of over Rs 10 crore annually at a revised interest cost of 8.9%, it added.

At 12.04 am, the scrip was trading 0.3% higher at Rs 290 over its previous day’s closing price of Rs 289 apiece. The stock has surged about 31% year-to-date, while in the last three years it has given a multibagger return of 450%.

“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 said.

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

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 five years at optimized cost and amortization; thus, resulting in incremental surplus cash generation of around Rs 500 crore over the following 5 years and further achieving rating improvement to AAA for these assets, which is a first for any BOT Asset in India.

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