IRB Infra's Board Approves 1:10 Stock Split

The board of directors of IRB Infrastructure Developers Ltd. has approved a stock split in the ratio of 1:10—one share of Rs 10 will be divided into 10 shares of Re 1 each. The record date will be announced in due course.

"To enhance the liquidity in the capital market, to widen the shareholder base, and to make the shares more affordable to small investors, the board approved a stock split," IRB Infra said. The company will complete the corporate action on or before Feb. 28, 2023, subject to necessary approvals.

With an asset base of over Rs 60,000 crore in 10 states and two InvITs, the company has a strong track record of constructing, tolling, operating, and maintaining around 15,500 lane kilometres pan-India and has the ability to construct over 500 kilometres in a year.

It has around 20% of India’s prestigious 'Golden Quadrilateral' project, which is the largest by any private infrastructure developer in India. IRB Group’s project portfolio, including private and public InvITs, has 22 road projects that include 17 build-operate-transfer, one toll-operate-transfer, and four hybrid annuity model projects.

Virendra Mhaiskar, chairman and managing director, said, "As we approach the auspicious occasion of completing 25 years of incorporation and 15 years as a listed company on Indian bourses, the board has decided to effect this stock split. As a responsible corporate, the company has progressed over these 25 years in a meaningful manner, creating toll road assets in excess of Rs 60,000 crore across the group and, in the process, creating significant shareholder wealth."

Shares are up 11% in the last month compared with a 3% decline in the Sensex. The stock hit a 52-week high of Rs 329 on Dec. 14, 2022, and is 12.5% short of its all-time high of Rs 347 it hit on Oct. 25, 2021.