IRB Infrastructure Developers share price jumps over 4% after promoter’s stock buying move. Details here | Stock Market News
Shares of IRB Infrastructure Developers witnessed a strong uptick on Friday, January 17, climbing over 4 per cent after the company’s promoter disclosed the release of a substantial share encumbrance. This development bolstered investor confidence, reflecting positively on the stock’s performance in an otherwise weak market.
The rally in IRB Infrastructure’s stock was triggered by a filing submitted by Sudha Dattaray, one of the company’s promoters. The disclosure, made under Regulation 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, revealed the release of encumbrance on 28.4 lakh shares. These shares represented approximately 0.047 per cent of IRB Infrastructure’s total equity.
Dattaray holds a total of 50.59 lakh shares in the company, equating to 0.08 per cent of the total equity. Of these, 35.90 lakh shares, or 0.059 per cent of the equity, were pledged. The latest disclosure confirms that the majority of the pledged shares have now been released, leaving only 7.5 lakh shares—or a mere 0.01 per cent of the company’s total equity—still encumbered.
The filing indicated that the shares were initially pledged for personal borrowing purposes. Jio Financial Services was named as the entity in whose favour the shares were encumbered. The release of such a significant portion of the pledged shares signals a positive move by the promoter, alleviating concerns about financial stress or over-leverage.
The release of encumbrances often indicates reduced financial obligations on the part of promoters, which is generally seen as a positive signal by the market.
Stock price trend
The stock climbed as much as 4.2 per cent to its day’s high of ₹54.78. It is now 30 per cent away from its 52-week high of ₹78.05, hit in June 2024. Meanwhile, the stock has advanced 22 per cent from its 52-week low of ₹44.96, recorded in January 2024.
In the last one year, the stock has gained 15.5 per cent while lost 4.5 per cent in January so far after 2 straight months of gains.
Financial Performance
IRB Infrastructure Developers reported a 4 per cent increase in consolidated net profit to ₹99.86 crore for Q2FY25, compared to ₹95.74 crore in the year-ago period. Total income declined to ₹1,751.16 crore from ₹1,874.50 crore a year earlier. However, toll collection surged 25 per cent year-on-year, including contributions from projects under its Private InvIT.
Despite heavy monsoons causing temporary traffic disruptions, the company highlighted robust toll collection growth, reflecting steady operational performance. Management expressed confidence in maintaining growth despite weather-related challenges, citing the resilience of its asset portfolio.
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