IRB Infrastructure Developers Ltd. on Sunday announced the execution of definitive agreements in relation to the implementation of the Ganga Expressway Project.
A definitive agreement is a binding contract that records the final terms and conditions for a project between two or more companies.
The agreements involve the Meerut Budaun Expressway Ltd (MBEL), a special purpose vehicle (SPV) floated by IRB Infra for the Ganga Expressway Project, and the affiliates of GIC Private Ltd (the project’s financial investors).
“The company has now executed the framework agreement, the debenture subscription agreement, the shareholders' agreement, and other ancillary agreements with the financial investor, Anahera Investment Pte. Ltd., an affiliate of GIC Private Limited,
According to the agreement, the contributions of IRB Infra and the financial investor to the project are proposed to be in the ratio of 51:49. IRB Infra will also act as the project manager of MBEL to implement the Ganga Expressway Project.
Shares of IRB Infra are trading with gains of 8.6 percent at Rs 234.45 as of 12:45 PM, and are outperforming the broader market. Monday's gains have also meant that the stock has pared its losses for the year, and is now up 5 percent year-to-date.
Last week, IRB Infra received an appointed date for its SPV, Meerut-Badaun Expressway Pvt Ltd., from the Uttar Pradesh Expressways and Industrial Development Authority (UPEIDA) for the Meerut to Badaun stretch of the Ganga Expressway Group 1.
“IRB, in line with the receipt of the appointed date, is now set to commence the construction activity in full swing so as to meet the set timeline for completion and commissioning of the project for use of people of the state of UP; resources for which have already been deployed,” the company said in a statement back then.
