Cintra, Ferrovial’s toll road subsidiary, has closed the 369 million euro purchase of a 24.86% stake in IRB Infrastructure Developers, one of India’s leading infrastructure companies.
The transaction was made possible after the successful completion of a preferential capital increase by IRB Infrastructure Developers, one of the sector leaders in the Indian market, where it manages 24 projects and more than 2,500 kilometers of highways, according to Ferrovial in a press release.
Ferrovial thus becomes a significant minority shareholder, with a presence on the company’s Board of Directors. Cintra is expected to support the company in its development and transfer its extensive international experience in highway management and analysis of new investments. The management of the company will remain in the hands of its major shareholder, Virendra D. Mhaiskar (his family and holding company).
The company sees great growth opportunities in India, given the volume of concession projects. Infrastructure development plans in India have been multiplying in recent years, with a growing presence of the PPP (public-private partnership) model. For the period 2022-2025, investment in highways is expected to exceed 240 billion euros, as well as privatizations for more than 18 billion euros, which have attracted the attention of a multitude of international financial and industrial investors.
IRB Infrastructure Developers, listed on the Bombay Stock Exchange, was founded in 1998 and is one of India’s leading infrastructure companies. It currently has 24 highway concessions in its portfolio, representing a share of around 20% of the so-called Golden Quadrilateral, a road network linking the main economic development poles in India. Its assets include the Mumbai-Pune highway, considered one of the main highways in the country. Last year its revenues amounted to 630 million euros.