IRB Infrastructure share price falls 10% after ₹2,033 crore block deal – CNBC TV18

IRB Infrastructure share price falls 10% after ₹2,033 crore block deal – CNBC TV18

Shares of IRB Infrastructure Developers Ltd. declined more than 10% on Thursday, May 30, after a large trade that took place in the stock.

As many as 31.3 crore shares or a 5.20% of the company’s total equity changed hands in a block deal that took place on the exchanges. The average price at which the shares changed hands was ₹65 per share, taking the total transaction value above ₹2,033 crore.

CNBC-TV18 had reported on Wednesday evening citing sources that two seller entities — IRB Holding Pvt Ltd and Deepali Virendra Mhaiskar — will offer up to 225 million and 15 million shares in the transaction.

Buyers and sellers in this transaction remain unknown on an official basis.

Jefferies and CLSA India are reported to be the brokers of the block trade.

Additionally, the sellers are subject to a 180-day lock-up period on further share sales.

In March this year, domestic brokerage firm Kotak Institutional Equities (KIE) had upgraded the IRB Infra stock and saw another 20% upside in the infrastructure player.

Another broking house Motilal Oswal had shared its view on the stock with a ‘Neutral’ rating and a price target of 60 per share. “IRB will benefit from the growing EPC and O&M order book, which stood at 36,200 crore as of December 2023. With a robust tender pipeline of projects to be awarded by NHAI and a healthy order book, we expect it to register a 12% revenue CAGR over FY24-26E with sustained margins,” it said.

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