IRB Infra Stock Surges 6% and Approaches 52-Week High After Trading Ex-Split in 1:10 Ratio"

Shares of IRB Infrastructure Developers Ltd surged more than 2% to ₹31 apiece on the BSE in Wednesday's deals as the stock started trading ex-split, following the record date of the sub-division of the company's equity shares in the ratio of 1:10.

Last month, the company's board approved the sub-division/split of existing equity shares of the company, from 1 equity share having a face value of ₹10 each, fully paid-up, into 10 equity shares having a face value of ₹1 each fully paid-up, subject to the approval of shareholders. 

The 'Record Date' for the stock split was set to be Wednesday, February 22, 2023, to determine the eligibility of shareholders.

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A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders, which makes the stock more affordable if its price levels are high, leading to an increase in liquidity in the stock.

IRB Infrastructure Developers Ltd reported a 95% jump in its consolidated net profit to ₹141 crore for the quarter ended December 31, 2022 (Q3 FY23), compared to ₹72.7 crore during the year-ago quarter.

Its total income during October-December 2022 rose to ₹1,570 crore from ₹1,498 crore in the year-ago period. The company's expenses decreased from 1,280 crore to 352 crore.

Meanwhile, the company's revenue from toll collection grew 36% to ₹375 crore in January 2023, compared to ₹276 crore in January 2022. 

According to Virendra D Mhaiskar, Chairman & Managing Director of IRB Infrastructure Developers, the consistent growth in toll revenue across all the company's projects reflects the economic stability that the country has achieved post-pandemic, with these corridors playing a vital role in it.

In a separate statement last month, the company announced that GIC Affiliates has committed to a 49% investment in the Ganga Expressway Project, with the first tranche of about ₹329 crore already received.