Shares of IRB Infrastructure Developers Ltd. plunged nearly 15 percent in intraday trade on Thursday, a day after hitting a 52-week high post a stock split in the ratio of 1:10.
The IRB Infra stock tumbled as much as 14.5 percent on Thursday to hit an intra-day low of Rs 29.25 per piece on BSE.
Interestingly, the stock had started trading ex-split on Wednesday and had risen more than 17 percent during the session to hit a 52-week high of Rs 34.90 (adjusted) per share.
IRB Infrastructure last month announced that its board had approved the sub-division/split of existing equity shares of the company from 1 equity share having a face value of Rs 10 each into 10 equity shares having a face value of Re 1 each, subject to the approval of shareholders of the company.
The company had said that the decision was taken to widen the shareholder base and to make the shares more affordable for small investors.
It had fixed Wednesday, February 22, 2023, as the ‘Record Date’ for the purpose of determining the eligibility of shareholders for the purpose of the stock split.
Earlier this month, IRB Infra reported near-estimate numbers for the December quarter. The company’s net profit nearly doubled to Rs 141.35 crore for the quarter. Total income also rose to Rs 1,570 crore from Rs 1,497.78 crore in the year-ago period.
Speaking to CNBC-TV18 earlier this month, IRB Infra’s CFO Tushar Kawedia said that toll collections were expected to rise 10-12 percent in the fiscal year 2024.
He had also mentioned that the Ganga Expressway Project was estimated to contribute Rs 500-600 crore to the company’s toll collections every quarter.
Additionally, the company informed that its current order book stands at Rs 19,000 crore, including Rs 8,000 crore for EPC (engineering, procurement, and construction) projects and Rs 11,000 crore for O&M (operations and maintenance) projects.
