IRB Infrastructure board approves Rs 2,500 crore fund raising to support Capex requirement

The board of directors at IRB Infrastructure Developers Ltd, India's one of the largest Highways Infrastructure Developers, has approved fundraising of up to Rs 2,500 crore to meet ongoing and planned Capex requirements besides cash flow mismatches as well as for general corporate purposes in wake of COVID-19 lockdown impact.

"We plan to use these funds to meet payments to creditors, firm up project expenses as well as the general corporate purposes during the ongoing lockdown situation due to COVID-19," said Chairman and Managing Director Virendra Mhaiskar. 

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"In view of the company's track record of more than 20 years, in-house capabilities, rich domain expertise and experience, we do not see any difficulty in raising money," he said in a statement. 

IRB Infrastructure had recently closed the largest deal of about Rs 4,400 crore with GIC affiliates in Singapore towards investment in the company's nine build-operate-transfer assets under private infrastructure investment trust structure. 

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Also, SEBI has granted the Certificate of Registration to the trust, for which IRB is a sponsor, to carry out the activities as an InvIT, subject to the conditions specified in the SEBI Act, 1992. IRB said that it has resumed toll operations and construction activities across India in line with the guidelines issued by NHAI regarding Covid-19. IRB Infra’s SPVs (special purpose vehicles) collectively operate 50 toll plazas across India.

The Company had also bagged Rs 8,200 crore prestigious Mumbai Pune Expressway project under toll operate transfer and commissioned Goa-Kundapura build-operate-transfer project, making all projects revenue-generating.