IRB Infra Stock Split: IRB Infrastructure Developers (IRB Infra) stocks fell over 5 per cent in Thursday’s trade after the company announced the sub-division of equity shares. The company said it will split its shares with a face value of Rs 10 each in the 1:10 ratio. The company said it will now initiate for shareholders’ approval and regulatory nods to bring the share split into effect for trading on stock exchanges.
IRB Infrastructure Developers Stock Split: What it Means for Investors
Generally, during a stock split, the number of outstanding shares rises while the price per equity share gets cheaper proportionately. Sub-division of shares enables improved liquidity and further makes the stock affordable for investors.
IRB Infra said it would announce the record date in the due course. IRB Infra will complete corporate action on or before February 28, subject to necessary approvals, according to the exchange filing,
“The Board considered the proposal for sub-division of 1(One) equity share of the Company having face value of Rs 10/- (Rupees Ten) each into 10 (Ten) equity shares having face value of Rs 1/- (One) each, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company," said IRB Infrastructure Developers.
“As we approach the auspicious occasion of completing 25 years of incorporation and completion of 15 years as a listed company on Indian bourses, the board has decided to effect this stock split. As a responsible corporate, the company has progressed over these 25 years in a meaningful manner, creating toll road assets in excess of Rs 60,000 Crores across the group, and in the process creating significant shareholder wealth. With the mindset of further rewarding and accommodating small shareholders in the value accretive journey of the company, we thought it necessary to effect the above stock split to have a sizeable participation from this segment of investors in the company’s unfolding growth journey," said Virendra D. Mhaiskar, Chairman & Managing Director.
IRB Infrastructure Developers Stock Performance
Following the development, shares of IRB Infra gained during the early trade to Rs 323.65 on Thursday, but they dropped over 5 per cent to Rs 306 level as the session progressed.
The stock has surged about 31 per cent year-to-date, whereas delivered a stellar return of 535 per cent from its Covid-19 low of Rs 51. In the last six months the stock has added 65 per cent.
IRB Infra’s special purpose vehicle Udaipur Tollway Limited has raised Rs 700 crore via NCDs and the proceeds would be utilised for part takeout financing of the existing project loans last week.
IRB Infrastructure Developers has been incorporated for more than 25 years and it has been listed for 15 years at Dalal Street before going for a stock split. IRB Infra has approximately 20 per cent share in the Golden Quadrilateral project, which is the largest by any private infrastructure developer in India.
After successfully completing 13 concessions and handing them over to nodal agencies, IIRB Group’s project portfolio (including private and public InvIT) has 22 road projects.
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