Small-cap stocks mulling stock split raises ₹700 crore via NCD

RIB Infrastructure Ltd informed Indian bourses about the fund raise citing, “Continuing with our effort of return enhancement through refinancing of completed projects, this is to inform you that another subsidiary of IRB Infrastructure Trust (sponsored by IRB Infrastructure Developers Limited) – Udaipur Tollway Limited (UTL), has allotted unlisted, rated, redeemable nonconvertible debentures aggregating to ₹700 Crores on a private placement basis to eligible investors on December 29, 2022. The NCD proceeds from refinancing would be utilized for part takeout financing of the Existing Project Loans obtained and provide significant saving of over ₹100 mn annually at revised interest cost of around 8.9%.”

“To reiterate, we had refinanced 2 BOT projects – Yedeshi Aurangabad and Solapur Yedeshi earlier this quarter. This involved fixing rates for at least 5 years at optimized cost and amortization, resulting in incremental cash surplus generation of ₹5 Bn over next 5 years. The process also involved achieving rating improvement to AAA (first BOT in India) for these assets,” said IRB Infra in its exchange communication.

The small-cap company with market cap of ₹17,537 crore on BSE has informed Indian bourses that its board of directors are going to discuss and consider stock subdivision in its scheduled board meeting on 3rd January 2023 citing, “Pursuant to regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, this is to inform that a meeting of the Board of Directors of the Company is scheduled to be held on January 04, 2023, to consider, inter-alia, a proposal for alteration in the share capital of the Company by sub-division/split of existing equity shares having face value of Rs. 10/- each, fully paid up. Further, for the purposes of the above and in terms of the Code of Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by Designated Persons, the trading window for dealing in securities of the Company is hereby closed and will open 48 hours after the announcement of financial results for the quarter ended December 31, 2022 to the public.”