IRB Infrastructure Developers on Wednesday (4 January 2022) announced that its board has approved a 10-for-1 stock split.
The company's board has approved the proposal for sub-division of existing equity share of the company from 1 equity share having face value of Rs 10 each, fully paid-up into 10 equity shares having face value of Re 1 each fully paid-up, subject to the approval of shareholders of the company. The record date for the will be intimated in due course, said the company.
The company stated that the rationale behind the split is to enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors.
The firm said that it will complete corporate action on or before 28 February 2023 subject to necessary approvals.
Virendra D. Mhaiskar, chairman & managing director of the company said, 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 crore across the group, and in the process creating significant shareholder wealth.
Furhter he added, 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.
IRB Infrastructure Developers is India's first multinational infrastructure player in highways segment. As the largest integrated private toll roads and highways infrastructure developer in India, IRB has an asset base of over Rs 60,000 crore in 10 states across the parent company and two InvITs.
On a consolidated basis, net profit of IRB Infrastructure Developers rose 101.63% to Rs 85.31 crore on 8.35% decline in net sales to Rs 1342.95 crore in Q2 September 2022 over Q2 September 2021.
Shares of IRB Infrastructure Developers slipped 2.61% to Rs 311.30 on the BSE.
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