IRB achieves Project Finance for Kishangarh-Gulabpura tollway

IRB Infrastructure Developers Limited (IRB), India's leading private roadway developer, has successfully achieved the financial closure of Rs. 1,020 crores for its Kishangarh to Gulabpura tollway project.

The total cost of the six laning project is Rs. 1,526 crores, of which Rs. 506 crores will be arranged through equity contribution / internal accrual by the company. The remaining will be through the project finance of Rs. 1,020 crores at an average cost of debt of 10.20 per cent per annum. The financing is through a consortium of lenders led by State Bank of India and includes Yes Bank, Bank of Maharashtra and IFCI Limited.

The project is awarded by the National Highway Authority of India (NHAI) to the SPY, a wholly-owned subsidiary of IRB. This project involves of six laning (90.000 km) of Kishangarh to Gulabpura Section of NH 79A and NH 79 in Rajasthan on DBFOT (Toll) mode. IRB has offered a premium of Rs. 186.30 crores to NHAI. 

IRB reported a net profit of Rs. 207 crore for Q3FY18, up 13 per cent YoY. The company declared Rs. 2.50 per share as second interim dividend. The company's total income for Q3FY18 is Rs. 1,342 crore. The management said that margins were lower in Q3 because the company had transferred seven toll business assets of build-operate-transfer (BOT) to InvIT during the.  

At 10:53, the stock of IRB was trading at Rs. 227.25, unchanged compared to its last closing price. The stock was a high of Rs. 230.60 and low of Rs. 225.35 per share on Wednesday.