Key Points of Stock Sell-Off:
- IRB Infrastructure’s shares plummeted by 14% after hitting a 52-week high post a 10:1 split.
- The counter opened at Rs 31.85, down 10% from the previous close of Rs 34.05 and quoted at Rs 29.60 around 1 PM.
- The split aimed to enhance liquidity, widen the shareholder base, and make shares affordable for small investors.
- The company reported a 94% YoY increase in net profit in Q3 and 36% growth in January’s total toll collection.
Details of Stock Sell-Off:
IRB Infra Developers experiences a 14% dip in shares following a 10:1 split, despite hitting a fresh 52-week high. The Mumbai-based company’s counter opened at Rs 31.85 on NSE, down 10% from its previous close at Rs 34.05, and quoted at Rs 29.60 around 1 PM.
Although the shares traded ex-split yesterday and touched an adjusted 52-week high of Rs 34.90, it has gained 19% in the last two sessions. Each share of IRB Infra now has a new face value of Re 1 after the split, which aims to enhance liquidity in the market, widen the shareholder base, and make shares more accessible to small investors.
In the October-December quarter, the infrastructure developer reported a significant 94% increase in net profit to Rs 141.35 crore from Rs 72.68 crore in the same period of the previous fiscal year.
In addition, its total toll collection in January 2023 rose by 36%, amounting to Rs 374.81 crores, compared to Rs 276.44 crores in January 2022. Despite the temporary dip in share prices, the company’s strong financial performance and growth potential indicate a promising future for IRB Infrastructure Developers.
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