IRB Infrastructure board approves fund raising of Rs 2,500 crore to tide over lockdown impact
The board of directors at IRB Infrastructure Developers Ltd has approved fund raising 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.
"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.
The company's board approved fund raising through appropriate instruments in one or more tranches to eligible investors who are allowed to invest in or subscribe to such instruments. The management administration and share transfer committee of the board is authorised to take all necessary actions in this regard, the company said.
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.
It also bagged Rs 8,200 crore prestigious Mumbai Pune Expressway project under toll operate transfer and commissioned Goa-Kundapura build-operate-transfer project, thus making all projects revenue-generating.
The company said it has resumed toll operations and construction activities across India in line with the guidelines by National Highways Authority of India on COVID-19.