IRB Infrastructure Developers Ltd., India’s one of the leading highways infrastructure developers has completed the equity fundraise of INR 5,347 Crores, the largest equity fundraise by Indian highways infrastructure developers.
While commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director said, “We are happy to successfully close the largest fundraise in India’s highways infrastructure sector and welcome our new investors Cintra and Bricklayers to IRB family. We also welcome nominees of Cintra on the Board. We are grateful to all our Shareholders, including the Institutional Shareholders for their whole-hearted support shown through a thumping favourable voting for the fundraise resolution at the EGM as well as the Statutory Authorities for according the mandatory statutory approvals for the deal. He added, “We are confident that with strong financial and strategic support as well as guidance of our new investors and stakeholders, IRB will excel across its operations and conquer new peaks of success in India’s highways developments sector.”
To re-iterate, on 26th October 2021, IRB Infra had announced the equity fundraise of up to INR 5,347 Crores through preferential shares allotment to the Cintra INR Investments BV, a 100% subsidiary of Cintra Global S.E., which is 100% subsidiary of the Ferrovial S.A., Spain, a global infrastructure giant and Bricklayers Investment Pte. Ltd., a 100% subsidiary of GIC, Sovereign Wealth Fund of the Singapore Govt.
As per the deal, Cintra has invested INR 3,180 Crores through preferential placement, thus holding up to 24.9% stake in the Company; whereas, Bricklayers Investment has invested INR 2,167 Crores through preferential issue, thus holding up to 16.9% stake in the Company.
Further, the Cintra has nominated Mr. Jose Tamariz Martel Goncer as a Non-retiring Additional Non-executive Director and Mr. Carlos Ugarte Cruz Coke as an Additional Non-executive Director on the Board of IRB Infrastructure Developers Ltd.
Mr. Jose, a Civil Engineer by Profession, joined Cintra in 1999. Since then, he has held several positions such as Head of Development at Cintra Aparcamientos and Head of Ireland. He became Head of Canada and CEO of 407 ETR in 2009, Head of Europe and New Markets in 2017 and Asset Management Director in 2018 to direct the Cintra Global and Cintra Infrastructure offices, located in Nederland.
Mr. Carlos, an Economist from the University of Chile, MBA and MSBA from the University of Southern California, joined Cintra in 1998 as CFO of Cintra Chile. He was appointed Head of Development NA in 2006 and Cintra Head of Business Development in 2010. He started his PPP career in the Treasury Ministry of Chile in 1986.
Mr. Virendra D. Mhaiskar, the Founder Promoter of IRB Infra will continue as the promoter and single largest shareholder with 34% holding in the company and will retain the management control.
The Company had convened Extra Ordinary General Meeting of its Shareholders on 20th November 2021, to seek their approval for the equity fundraise. 95% Shareholders, including the large Institutional Shareholders, have extended their full support with thumping votes favouring the resolution.