IRB Infra shares rise after bagging infra project from Hyderabad's development authority

Shares of IRB Infrastructure Developers (IRB Infra) jumped more than 5 per cent on Friday after the company bagged a toll-operate-transfer (TOT) order for the Nehru Outer Ring Road crore from Hyderabad Metropolitan Development Authority (HMDA).

"We are pleased to inform you that IRB has emerged as the selected bidder for the project of tolling, operation, maintenance and Transfer (TOT) of Nehru Outer Ring Road in Hyderabad, Telangana and has received a Letter of Award (LOA) from Hyderabad Metropolitan Development Authority (HMDA)," the company said in an exchange filing on Thursday, April 27.

Following the announcement, shares of IRB Infra rose more than 4 per cent to Rs 28.33 on Friday, before stock dropped to Rs 27.56 at 2.00 pm. The company was commanding a market capitalisation of close to Rs 16,700 crore. The scrip had settled at Rs 27.15 on Thursday.

IRB Infrastructure will have to pay an upfront concession fee of Rs 7,380 crore to HMDA for a revenue-linked concession period of 30 years. After signing the concession agreement, the project SPV will be making the payment of Rs 7,380 crore within a span of 120 days.

The project will have 22 toll plazas, 22 interchanges, 8 major bridges, 122 minor bridges, a flyover, 4 railway over bridges, 168 underpasses, a large number of culverts and causeways. The total service road length is about 294 kilometers (km). The project has close loop tolling.

With this award, IRB Infras' asset base expands to over Rs 70,000 crore and the O&M order book grows by Rs 14,500 crore. It is the largest single asset TOT project in the country – after the Mumbai-Pune Expressway project. Both projects are in IRB Infra's portfolio, taking the company's share in TOT space to 37 per cent.

"Proud to add this prestigious project to our portfolio, taking our asset base to over Rs 70,000 crore and share in TOT space to 37 per cent, the largest by any private player in India, " said Virendra D Mhaiskar, Chairman and Managing Director, IRB Infrastructure Developers.

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