Ferrovial confirmed the development in a statement, adding that it will be acquiring the stake for $810 million (about ₹6,720 crore). “Completion of the acquisition is subject to fulfilment of conditions precedent, including receipt of requisite regulatory and third-party approvals,” IRB Infrastructure Developers said in a regulatory filing.
Ferrovial said it expects the deal to clse by the end of April 2024. The acquisition price and outstanding equity commitments will be funded with equity and, potentially, non-recourse debt and other sources of financing, it added.
“The company will also benefit from the growing EPC and O&M order book as the sole project manager to the Trust,” IRB Infrastructure Developers said.
IRB Infrastructure Trust is an infrastructure investment trust registered with SEBI and listed on the NSE. IRB owns 51% of units in the trust while the remainder is currently held by affiliates of GIC. The trust holds a portfolio of 15 road projects, spanning across 10,567 lane kms.
Since its inception in 1998, it has built more than 18,500 lane kilometres of roads in India. India’s infrastructure development plans have expanded substantially in recent years with planned capital expenditures of 240 billion euros in roads and highways between the years 2020-2025, according to the Ministry of Finance report on the National Infrastructure Pipeline.
Shares of IRB Infrastructure Developers Ltd ended at ₹56.00, up by ₹5.05, or 9.91% on the BSE.
