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Road infrastructure company IRB Infrastructure Developers on Thursday announced that it is forming an infrastructure investment trust (InvIT), under which it will float various infrastructure projects, for which it has created special purpose vehicles (SPVs). This trust will raise funds on behalf of the SPVs.
The will enable the company to increase the borrowing limit from ₹20,000 crore to ₹36,000 crore, the company said in a statement, adding that it will seek shareholders’ approval for the proposal.
The Securities and Exchange Board of India last year approved norms for InvITs. This would be the first company to raise funds through InvITs, subject to shareholder approval. According to SEBI norms, a sponsor of InvITs has to hold 25 per cent stake in the company for a period of three years.
The company also announced its financial performance for the quarter ended June. It reported a net profit of ₹165 crore for the period as against ₹150 crore in the year-ago period. Net sales stood at ₹1,108 crore (₹1,010 crore).
IRB’s order book stands at approximately ₹12,100 crore of which ₹10,270 crore worth of orders would be executed in the next three to four years.
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