new deal in IRB infrastructure valued Mumbai, May 30, 2024 – In a significant development, IRB Infrastructure Developers Ltd has witnessed the launch of a substantial block deal on May 29, 2024. This deal, which includes a combined offering of up to 240 million shares, is valued at up to ₹1,512 crore. The shares are being offered by IRB Holding Private Ltd and Deepali Virendra Mhaiskar.
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Details of the Block Deal ( IRB Infrastructure )
IRB Holding Private Ltd, a key stakeholder in IRB Infrastructure, is offering up to 225 million shares. Additionally, Deepali Virendra Mhaiskar is selling up to 15 million shares in this transaction. The offer price range is set between ₹63.0 and ₹72.7 per share, representing a potential discount of up to 13.3% from the upper price band of ₹72.7 per share. This offering comprises up to 4% of the company’s total equity.
Market Reaction
Despite the potential discount, the market responded positively to the news. Shares of IRB Infrastructure Developers Ltd ended the trading day at ₹72.74, marking an increase of ₹1.22 or 1.71% on the Bombay Stock Exchange (BSE). This uptick indicates investor confidence in the company’s fundamentals, even in light of the discounted share offering.
Deal Management and Lock-Up Period
The transaction is being managed by Jefferies India Private Ltd and CLSA India Private Ltd. To maintain market stability, the sellers have agreed to a 180-day lock-up period, during which they will refrain from further share sales.
Financial Performance of IRB Infrastructure
IRB Infrastructure Developers Ltd has reported strong financial performance for the fourth quarter ending March 31, 2024. The company’s net profit surged by 45.1% year-on-year to ₹188.9 crore, up from ₹130.2 crore in the same period last year. Revenue from operations also saw a significant increase of 27.2%, reaching ₹2,061.2 crore compared to ₹1,620 crore in the previous fiscal year. At the operating level, EBITDA rose by 17.3% to ₹889.9 crore, up from ₹758.7 crore in the corresponding quarter of the previous year.
Market Context
In the broader market, several other notable movements were observed. Kotak Mahindra Bank’s shares rose to ₹1,703.00, marking a 0.90% increase. Hero Motocorp saw its shares climb by 0.63% to ₹5,176.30. ICICI Bank and SBI also reported gains, with their shares rising by 0.60% and 0.55%, respectively. HDFC Bank’s shares showed a modest increase of 0.29%, reaching ₹1,512.70.
Additionally, there were significant dividend announcements. Amara Raja Energy declared a 510% dividend following a 61% jump in its Q4 net profit. RHI Magnesita announced a dividend of ₹2.50 per share as its net loss shrank.
Conclusion
The launch of this substantial block deal highlights the confidence of major stakeholders in IRB Infrastructure Developers Ltd while providing an opportunity for new investors to enter at a potentially attractive price point. The company’s robust financial performance and the positive market reaction to the block deal underscore its strong market position and growth potential. As IRB Infrastructure continues to develop and expand, this block deal is a pivotal moment in its financial trajectory.
In Point
Block Deal in IRB Infrastructure: Key Highlights
Deal Overview:
- Seller: IRB Holding Private Ltd and Deepali Virendra Mhaiskar
- Shares Offered: Up to 240 million shares (225 million by IRB Holding, 15 million by Mhaiskar)
- Deal Value: Up to ₹1,512 crore
- Offer Price Range: ₹63.0 to ₹72.7 per share
- Discount: Up to 13.3% from the upper price band
- Equity Percentage: Up to 4% of the company’s equity
Market Reaction:
- Closing Share Price: ₹72.74
- Price Change: Increased by ₹1.22 (1.71%) on BSE
Deal Management:
- Managers: Jefferies India Private Ltd and CLSA India Private Ltd
- Lock-up Period: 180 days for sellers on further share sales
Company Financial Performance (Q4 FY2024)
- Net Profit: ₹188.9 crore (45.1% YoY increase from ₹130.2 crore)
- Revenue: ₹2,061.2 crore (27.2% YoY increase from ₹1,620 crore)
- EBITDA: ₹889.9 crore (17.3% YoY increase from ₹758.7 crore)
Market Context
Other Notable Market Movements:
- Kotak Mahindra: ₹1,703.00 (+0.90%)
- Hero Motocorp: ₹5,176.30 (+0.63%)
- ICICI Bank: ₹1,108.65 (+0.60%)
- SBI: ₹827.15 (+0.55%)
- HDFC Bank: ₹1,512.70 (+0.29%)
Dividend Announcements:
- Amara Raja Energy: 510% dividend, Q4 net profit up 61%
- RHI Magnesita: ₹2.50/share dividend, net loss shrinks
Summary
A significant block deal in IRB Infrastructure, valued at up to ₹1,512 crore, has been launched by IRB Holding Private Ltd and Deepali Virendra Mhaiskar, offering a considerable portion of the company’s equity at a discounted price range. The company has shown strong financial performance with substantial growth in both net profit and revenue, which may influence market sentiments positively despite the offered discount.
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