IRB Infra share price: A day after surging 10 per cent, IRB Infra share price continued witnessing buying interest for the second consecutive session as it jumped over 7 per cent in morning trade on BSE on Friday, March 15, defying an overall downtrend in the market. IRB Infrastructure share price opened at ₹56.10 against the previous close of ₹56.07 and soon jumped 7.5 per cent to hit the level of ₹60.29. It, however, pared gains and traded around 3.58 per cent higher at ₹58.08 around 10:15 am.
IRB Infra share price saw healthy traction after the company said transport infrastructure developer Cintra, a subsidiary of Spanish infra group Ferrovial, will acquire a 24 per cent stake in IRB Infra Trust from GIC affiliates.
IRB Infra Trust is a listed SEBI-registered Infrastructure Investment Trust.
As Mint reported earlier, Cintra has entered into a definitive agreement for this acquisition which also includes a 24 per cent stake in MMK Toll Road Pvt Ltd, the investment manager of the Trust. The completion of the acquisition is subject to fulfillment of conditions precedent, including requisite regulatory and third-party approvals.
Also Read: Ferrovial subsidiary Cintra to acquire 24% stake in IRB Infra Trust from GIC
IRB Infra share price has been on a roll in the last one year, jumping as much as 103 per cent. The stock hit its 52-week high of ₹71.95 on February 5 this year and its 52-week low of ₹22.56 on March 28 last year.
According to the brokerage firm Motilal Oswal Financial Services, IRB Infrastructure Developers is uniquely positioned to expand its asset base and drive sustainable growth.
Motilal Oswal observed that IRB’s access to two InvIT platforms (IRB InvIT Fund and IRBIT) has supported capital unlocking in the past through asset monetisation and the company is expected to benefit from the same in the future as well.
“With a substantial NHAI pipeline of nearly ₹2 trillion BoT ((build, operate and transfer)) and 46 ToT (toll-operate-transfer) projects, the collaboration between a domestic player (IRB), a financial investor (GIC), and a strategic investor (Cintra) will enhance project planning and selection. This synergy positions IRB uniquely to expand its already largest asset base in the sector,” said Motilal Oswal.
“The company will benefit from the growing EPC (engineering, procurement and construction) and O&M (operation and maintenance) order book, which stood at ₹362 billion as of December 2023. With a robust tender pipeline of projects to be awarded by NHAI and a healthy order book, we expect IRB to register a nearly 12 per cent revenue CAGR over FY24-26E with sustained margins,” Motilal Oswal pointed out.
The brokerage firm has a ‘neutral’ rating on the stock with a SoTP-based target price of ₹60.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 15 Mar 2024, 10:32 AM IST
