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 IndiaThe Expressway is India's single largest concession under the TOT model for tolling and O&M, which commenced from March 1, 2020
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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