Shares of IRB Infrastructure rose 4% to Rs 295.25 in intraday trade on Tuesday after the company emerged as the preferred bidder for a Rs 2,132 crore build-operate-transfer (BOT) project in Gujarat state.

The concession period is 20 years from the appointed date, and the project is a six-lane 90.9 km section between Samakhiyali and Santalpur.

Following the award of the project, the company’s order book will be revised to approximately Rs 20,892 crore (excluding GST), which includes a construction order of Rs 9,714 crore, providing strong visibility for the next about 2.5 years.

IRB is India’s first multinational infrastructure operator in the highway sector. As India’s largest integrated private toll road and highway infrastructure developer, the winning bid will expand IRB Group’s asset base to over Rs 62,000 crore spread across 10 states of the parent company and the two InvITs.

The company has a proven track record in the construction, tolling, operation and maintenance of approximately 15,500 lane kilometres across India. It can construct more than 500 kilometres in a year. It owns about 20% of India’s famed Golden Quadrilateral project, the largest of any private infrastructure developer in India.

Meanwhile, IRB’s stock will undergo an ex-stock split of 1:10 on Wednesday, February 22. The company has fixed February 22, 2023, as the ‘record date’ to determine the eligibility of shareholders for sub-division/partition. One equity share of the face value of Rs 10 each is fully paid up in 10 equity shares of Re 1 each.

“The rationale behind the stock split is to enhance the liquidity of the capital markets, broaden the shareholder base, and make shares more affordable for small investors,” the company said.