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Business News/ Markets / Stock Markets/  Shares of IRB Infra gains 7% after it secures financial closure for Mumbai-Pune Expressway project
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Shares of IRB Infra gains 7% after it secures financial closure for Mumbai-Pune Expressway project

IRB Infrastructure Developers (IRB) is a private roads and highways infrastructure developer in India
  • The Expressway is India's single largest concession under the TOT model for tolling and O&M, which commenced from March 1, 2020
  • An aerial view of deserted Mumbai-Pune Expressway is seen during the nationwide lockdown.Premium
    An aerial view of deserted Mumbai-Pune Expressway is seen during the nationwide lockdown.

    MUMBAI : Shares of IRB Infrastructure Developers jumped as much as 7.38% on Friday after it has secures 6,610 crore financial closure for its Toll-Operate-Transfer project Mumbai Pune Expressway.

    IRB Infrastructure Developers closed at 70.70 up 1.36% from its previous close, while the benchmark index, Sensex gained 1.53% to close at 34731.73.

    The Expressway is India's single largest concession under the TOT model for tolling and O&M, which commenced from March 1, 2020 and the single largest debt tie-up in Indian roads and highways sector for 6,610 crore was closed in stipulated time amidst coronavirus pandemic.The project length is 205.4 km including expressway and section of NH-48, old Mumbai Pune corridor.

    As a commitment towards the fee obligations in concession agreement, the company on Thursday made the payment of first tranche of 6,500 crore as upfront sub-concession fee to the Maharashtra State Road Development Corporation, it said.

    Virendra D Mhaiskar, chairman and managing director said, “Achieving financial closure, amounting to a whopping 6,610 crore debt for India's largest road TOT project, in these difficult times was a massive ordeal – especially with more than half the stipulated time being tied away in lockdown."

    "Total sub-concession fee amounts to 8,262 crore, of which IRB Infra has paid MSRDC the upfront fee of 6,500 crore. Further staggered payments of 850 crore in year 2, 850 crore in year 3 and 62 crore in year 4 have been tied and will be made as per the concession guidelines," the company said.

    IRB Infrastructure Developers (IRB) is a private roads and highways infrastructure developer in India.

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    Published: 19 Jun 2020, 07:40 PM IST
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