IRB Infrastructure Developers Ltd updates on agreements with financial investor for Expressway Project

IRB Infrastructure Developers Limited has now executed the framework agreement, the debenture subscription agreement, the shareholders agreement, and other ancillary agreements with the financial investor, Anahera Investment Pte. Ltd. (an affiliate of GIC Private Limited) ("Financial Investor") and MBEL. Subject to the fulfilment of the conditions precedent and other conditions set out in the MBEL Documents (defined below in Annexure I), the Company's and the Financial Investor's contribution to the Project is proposed to be in the ratio of 51:49 respectively. The Company will also act as the Project Manager of MBEL to implement the Project.

The Company, the Financial Investor, and MBEL ("Parties") have entered into the MBEL Documents for recording the terms and conditions relating to the proposed subscription to the equity shares and non-convertible debentures (NCDs) of MBEL, both in the ratio of 51:49, subject to fulfilment of the conditions precedent and other conditions set out therein. MBEL would use the funds received for the purpose of development and implementation of the Project. The MBEL Documents also set out the rights and obligations of the Parties.

The Project Implementation Agreement is entered into by the Company with MBEL in the Company's capacity as a 'project manager' in relation to the Project, and sets out the obligations of the Company as a project manager with respect to the EPC and O&M works of the Ganga Expressway Project to be undertaken by the Company.

Under the Name Licensing Agreement, the Company has licensed certain trademarks, logos and the trade name of IRB to MBEL for the purpose of use in relation to its business and the Project.

Subject to fulfillment of the terms and conditions under the MBEL Documents including the conditions precedent, the Company and the Financial Investor have agreed to infuse approximately (a) Rs. 533.20 Crore by way of subscription to equity shares in a single tranche and (b) Rs. 1599.75 Crore by way of subscription to non-convertible debentures of MBEL in multiple tranches.

The Company will be paid approximately Rs. 10,459 Crore over the concession period as aggregate consideration for providing EPC and O&M works to MBEL for the Ganga Expressway Project under the Project Implementation Agreement and MBEL Documents.

Shares of IRB Infrastructure Developers Limited was last trading in BSE at Rs. 216.10 as compared to the previous close of Rs. 217.55. The total number of shares traded during the day was 61576 in over 1835 trades.

The stock hit an intraday high of Rs. 222.00 and intraday low of 215.00. The net turnover during the day was Rs. 13448461.00.

Source : Equity Bulls

Keywords

IRBInfrastructureDevelopers INE821I01014 Agreements FinancialInvestor GangaExpresswayProject