IRB Infra dips 4% on profit-booking; board approves 1:10 stock split

Shares of IRB Infrastructure Developers dipped 4 per cent to Rs 306 on the BSE in Thursday’s intra-day trades after the company said its board approved stock split in the ratio of 1:10 i.e. one stock of face value of Rs 10 into ten shares of face value of Re 1 per equity share. The record date for stock split will be intimated in due course, the company said in an exchange filing.

“To enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors, the board approved stock split,” IRB Infra said on rationale behind the split. The company will complete corporate action on or before February 28, 2023 subject to necessary approvals, it said.

“With the mindset of further rewarding and accommodating small shareholders in the value accretive journey of the company, we thought it necessary to effect the above stock split to have a sizeable participation from this segment of investors in the company’s unfolding growth journey,” Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infra said.

As the largest integrated private toll roads and highways infrastructure developer in India, IRB has an asset base of over Rs 60,000 crore in 10 States across the parent company and two InvITs. After successfully completing 13 Concessions and handing over them to the nodal agencies, at present, IRB Group’s project portfolio (including Private and Public InvIT) has 22 road projects that include 17 BOT, 1 TOT and 4 HAM projects.

Despite of today’s decline, in past one month, the stock of IRB Infra has rallied 12 per cent, as compared to 3.6 per cent decline in the S&P BSE Sensex. In past three months, it soared 45 per cent, as against 4 per cent gain in the benchmark index. The stock hit a 52-week high of Rs 329 on December 14, 2022. It touched an all-time high of Rs 347 on October 25, 2021.