Ferrovial intensifies its commitment in India. The Spanish infrastructure group, through its subsidiary Cintra, has acquired a 24% stake in IRB Infrastructure Trust from Singapore’s sovereign wealth fund GIC for 740 million euros. IRB Infrastructure Trust owns 15 toll road concessions in India, with 13 already operating and three under commitments, as confirmed in a message to the National Securities Market Commission (CNMV) in Spain.
This move adds to Ferrovial’s previous stake, established in 2021, of nearly a quarter of IRB Infrastructure Developers, which itself holds a 51% majority in the concession company that Ferrovial has just increased its exposure to with the new 24% stake. The accompanying note to the regulator states that Ferrovial views this transaction as completing its planned expansion in the Indian market, reaching its intended scale.
The deal is pending regulatory approvals, which were anticipated to be granted by the end of April of the current year. A conference call with investors was planned for that afternoon to provide additional details. In addition, the total investment includes 97 million euros earmarked to fund capital commitments on development projects by the concessionaire. Ferrovial now holds 24% of IRB Infrastructure Trust, GIC retains a 25% stake, and the remaining 51% continues to be held by IRB Infrastructure Developers, where Ferrovial holds 24.86%.
Acquisition of IRB Infrastructure Developers
The acquisition of IRB Infrastructure Developers has been one of Ferrovial’s strongest investments in recent years, at least in terms of value realization. The company ranks among India’s largest highway developers, boasting asset backing well over 770,000 crore rupees. Since its founding in 1998, it has constructed more than 18,500 kilometers of road lanes across the country.
The Spanish company acquired nearly 25% of the Asian entity through a preferred capital increase, investing 369 million euros. At the time, share prices fluctuated between 20 and 22 rupees. More than two years later, stock prices have surged to above 50 rupees, with recent peaks around 68 rupees, effectively doubling the initial investment.
Citations: Regulator filings and company disclosures confirm the structural details of ownership and the strategic significance of the investment for Ferrovial and its Indian platform. Market observers note that this step aligns with Ferrovial’s broader intent to build scale in growth markets through partnerships with leading local developers and sovereign wealth investors. [Source attribution for regulatory filings; company disclosures; market commentary]