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Highway developer IRB Infrastructure today received a board approval to raise as much as Rs 500 crore through private placement.
This fund raising will be done by the issue of redeemable non-convertible debt securities (including senior debt securities or subordinate debt securities) will be done in one or more tranches, the company said in a communication to the stock exchange.
This is the second infrastructure company which has come forward to raise funds through private placement, in the recent times. Earlier this year, Jaiprakash Associates raised around Rs 530 crore via share sale, via qualified institutional placement (QIP).
The company today posted a 26% growth in its fourth quarter net profit at Rs 151 crore, as compared to Rs 120 crore, in the same quarter last year. The company's revenue increased by 11% to Rs 980 crore, as compared to Rs 884 crore.
“The (topline) growth was mainly due to healthy execution pace in the under-construction build-operate and transfer projects. Although a slowdown in order awarding by National Highways Authority of India (NHAI) in road sector has been witnessed in FY2013 IRB expects ordering activity to improve going ahead. ,” said Viral Shah, senior research analyst at Angel Broking.
IRB’s orderbook stands at Rs 8,400 crore. As much as Rs 6,400 crore worth orders are to be executed in the next three years. “This order book gives IRB good visibility for the next three years,” the company said, in a press release.
The company's stock went up 6.3% in today's trade to close at Rs 124, as per data available on the Bombay Stock Exchange.
