Mumbai,27 Oct 2021:IRBInfrastructureDevelopersLimited(“IRB”)todayannouncedtwoequityfundraises through preferential allotments to (a) Cintra INR Investments BV (“Cintra”), a 100%subsidiaryofCintraGlobalS.E.and(b)BricklayersInvestmentPte.Ltd,anaffiliateofGIC(“GIC”),Singapore’ssovereignwealthfund.
Cintra Global S.E., a 100% subsidiary of global infrastructure giant Ferrovial S.A (“Ferrovial”),through its subsidiary Cintra would invest equity capital of up to INR 3,180 Cr into India’s largesttoll road developer – IRB; Cintra will have a maximum stake of 24.9% stake in IRB post theirinvestment.
GIC(throughitsaffiliate),wouldinvestequitycapitalofuptoINR2,167CrintoIRBforamaximumstakeofupto16.9%stakeinIRBposttheirinvestment.
ThetotalinvestmentproceedstoIRBfromtheseinvestmentswillbeamaximumofINR5,347Cr.TheissuepriceforboththepreferentialallotmentsisINR211.79pershare.
Mr. Virendra D. Mhaiskar, the Founder Promoter of IRB will continue as the promoter and singlelargestshareholderpostcompletionofthetransactionswithanapproximate34.0%stakeandwillretainmanagementcontrolofIRB.
These equity fund raises will help achieve the twin objectives of Deleveraging and Access toGrowth Capital to participate in the massive infrastructure development and monetization planoftheGovt.ofIndia.
IRB’sexecutioncapabilities,Cintra’sglobalbestpracticesandtechnicalprowesscoupledwithGIC backing as a long-term investor will be a launch pad for IRB to capture unprecedentedgrowthinacapitalefficientmanner.
Thetwotransactionsaresubjecttoexecutionofdefinitivedocuments,approvalofIRBShareholders,receiptofregulatoryandlendersapprovalsandsatisfactionofcustomaryconditionprecedents.
IndicativeUseofProceedsfromtheInvestment
- DeleveragingoftheCorporateLevelDebt–c.INR3,250Cr
- GrowthCapitalforCurrentandFutureOpportunities–MaxINR1,497Cr
- GeneralCorporatePurposes–c.INR600Cr
PostTransactionShareholding
Post the conclusion of the two transactions and maximum investment of INR 5,347 Cr. theshareholdingpatternofIRBwill beasbelow:
Mr.VirendraD.Mhaiskarandaffiliates(Promoter)–c.34.0%,OtherPublicShareholders–c.66.0%
In the eventuality that IRB is unable to issue shares to both investors concurrently (including dueto timing of receipt of regulatory approvals of either investor being longer than the regulatoryapprovalsfortheotherinvestor),thetotalinvestmentwouldgetreducedtoINR4,307Cr–4,462Cr.Theexactquantumwilldependonwhichinvestortransactioniscompletedearlier.
Commentingontheoccasion,Mr.VirendraMhaiskar,CMD–IRBInfrastructureDevelopersLtd.said “We are delighted to welcome Ferrovial through its subsidiary – Cintra into the IRB Family.Through this investment, IRB will deeply benefit in terms of their global experience and bestpracticesinthedevelopment,investment,andoperationoftollroadprojects.Wedeeplyvaluetheexisting relationship with GIC. This new investment by GIC is a further stamp of approval of theirconfidenceontherobustbusinessmodelofIRB.Thestrategyweinitiatedin2017bysponsoringthe first Public InvIT provided IRB a platform for recurrent capital recycling. This strategy wasfurtherstrengthenedin2019bysponsoringthePrivateInvIT,whichenhancedthebusinessmodelbygettingarecurrentinvestorforreducingequitycommitmentsthusincreasingtheabilitytotakein more projects at one time. The current transaction which addresses the twin objectives ofdeleveragingtheholdcodebtandprovidinggrowthcapitalisthefinalstepinoptimizingthecapitalstructure,unleashingthefreecashflowgenerationforgrowth,thuscreatingimmenseshareholdervalue.”
Commentingontheoccasion,Mr.AndresSacristan,CEO–Cintrasaid“ThisinvestmentinIRBInfrastructure Developers represents a great opportunity for Cintra to expand into a new marketfor us — India — that has very promising fundamentals for toll road development. IRB has aportfolio of high-quality assets and a platform with the capability to capture some of the stronggrowth expected in this sector. Cintra would work with IRB to enhance its competitive position intheIndianmarket.OurinternationalexperienceasaninvestorandoperatorwouldoptimizeIRB’soperational capacity and ESG compliance, a field in which Cintra and Ferrovial are internationalleaders”
Commenting on the occasion, Mr. Eng Seng Ang, CIO – Infrastructure at GIC said “Ourinvestment in IRB, a leader in Indian road infrastructure, will enable the company to develop andoperateagreaternetworkofroadsandfurtherenhancetheinfrastructureinIndia.Asalong-termglobal investor, we see India as a key market, given its strong economic fundamentals andinfrastructuredevelopmentpotential.”
AvenerCapitalPrivateLimitedactedastheexclusivefinancialadvisortoIRBforthetransaction.S&RAssociatesactedasalegaladvisortoIRB.