IRB Infrastructure Surges Over 10%

Record Highs and Significant Gains

On Monday, amidst a sea of green, many stocks touched record highs or 52-week highs. Among these, IRB Infrastructure Developers Ltd, one of India’s leading and largest integrated multinational transport infrastructure developers in the highways sector, surged more than 10%, inching closer to its 52-week high.

The stock of IRB Infrastructure Developers opened at Rs 74.60 and settled at Rs 72.80, up by 10.14% for the day. This marked the stock’s highest single-day gain since January 2024.

Positive Sentiment Catalyzed by Toll Charge Increase

The key catalyst for the positive sentiment in the stock was the anticipated increase in toll charges. Reports suggest that the central government is likely to increase road toll charges by 3-5% after having put the annual increase on hold in April ahead of the general elections.

Trading Activity and Year-to-Date Performance

About 17.37 crore shares changed hands on the NSE on Monday, and the stock has jumped approximately 76% on a year-to-date basis.

Substantial Fall Due to Block Deal

However, on Thursday, May 30, the stock witnessed a substantial fall of over 10% following a block deal. According to a recent press release by the company, IRB Holding Private Limited sold 22.5 crore shares, and Deepali Virendra Mhaiskar, jointly with Virendra Dattatraya Mhaiskar, sold 1.5 crore shares of IRB Infrastructure.

Financial Performance and Debt Refinancing

In FY24, the company reported a growth of 20.1% in revenue from the Mumbai-Pune toll collection and a 10.2% growth in revenue from the Ahmedabad-Vadodara toll collection.

Additionally, in FY24, IRB Infrastructure Trust completed the refinancing of Rs 64 billion in debt for its five project SPVs: Kishangarh Gulabpura, Agra Etawah, Hapur Moradabad, Kaithal Rajasthan, and Goa Kundapur. This resulted in an interest rate saving of 1.1% and Rs 10 billion in amortization savings over five years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.