Key Details of the Block Deal
- Volume Traded: 41.2 crore shares, representing 6.8% of IRB Infra's total equity.
- Transaction Value: ₹2,656 crore.
- Price per Share: ₹64.4.
- Market Reaction: IRB Infra shares were trading 8.17% lower at ₹64.43 apiece following the transaction.
* Performance: Despite the recent decline, the stock has gained 58.89% in the past six months and 132.18% in the past year.
Potential Seller: Cintra
On Monday, *CNBC-TV18 had reported, citing sources, that Cintra, a subsidiary of Spanish infrastructure group Ferrovial, was likely to sell up to a 5% stake in IRB Infra via a block deal.* Cintra held a 24.86% stake in IRB Infra as of the end of the March quarter. The deal was reportedly priced in the ₹63-70.16 per share range, representing up to a 10.2% discount to the last closing price.
Sources mentioned that the transaction size could be approximately ₹1,900.3 crore at the lower end of the price band. Additionally, if the entire stake was sold, a lock-up period of 150 days would be imposed on further sales.
Previous Large Trade
This is not the first significant block deal involving IRB Infra this year. *On May 30, a total of 31.3 crore shares, or 5.20% of the company's total equity, changed hands in another block deal.* The average price for that transaction was ₹65 per share, bringing the total transaction value above ₹2,033 crore.
Financial Performance:
IRB Infra has shown robust financial performance in recent quarters. *In the fourth quarter, the company's net profit increased by 45.1% to ₹188.9 crore compared to ₹130.2 crore in the previous year.* Revenue from operations also saw a significant rise of 27.2%, reaching ₹2,061.2 crore compared to ₹1,620 crore in the corresponding quarter of the previous year. At the operating level, EBITDA increased by 17.3% to ₹889.9 crore from ₹758.7 crore.
Conclusion:
The large block deal involving 6.8% of IRB Infra’s equity highlights the ongoing strategic interest in the company. With *Cintra potentially offloading a significant portion of its stake, market participants will closely watch the implications for IRB Infra's ownership structure and future performance.* Despite the immediate dip in share price, IRB Infra's impressive financial growth and substantial stock gains over the past year indicate strong underlying fundamentals.
Stay tuned for further updates on this developing story and other market news.
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