IRB currently has 18 BOT (build, operate and transfer) road projects counting up to 2,070 km with a total investment of Rs.28,300 crore. Of these, 13 projects are operational, and five are under construction. The company’s InvIT will house six NHAI road projects and spread across six states, employing equity and sub-debt of Rs.2,600 crore and debt of close to Rs.3,300 crore (see: Road runner). These six projects generated close to Rs.1,000 crore in revenues in FY16. IRB’s issue comprises a fresh issue of shares to raise Rs.4,300 crore. A chunk of the proceeds is earmarked for issuing fresh debt to the project SPVs so that they can prepay entirely or make partial repayment of money to its lenders. This also includes repayment of loan taken by the SPVs from the parent (sponsor) IRB Infrastructure.
Feature
Can Infra Firms Regain The Trust? - Part 2
Will investment trusts put an end to the funding woes of infrastructure companies?
Editor's Pick
Most Popular
Summer wine and salad
Kishore Singh - January 19, 2015
A double topping for growth
Meghna Maiti - January 15, 2015
Scriptures for success
Kripa Mahalingam - January 27, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Where's the party tonight?
Aditi Saxena - January 27, 2015