Shares of IRB Infrastructure Developers appeared to have plunged around 50 per cent in a single session on Monday as the stock adjusted to a 1:1 bonus issue. The stock actually rose 11 percent after meeting the bonus issue’s expiration date.
After closing at ₹40.93 per share on Friday, the stock opened at ₹20.56 on the NSE today. The shares then rose nearly 11 per cent to trade at Rs 22.7 apiece. The company currently has a capitalization of almost Rs 27,000 crore.
Announcing its quarterly results in February this year, IRB Infrastructure Developers announced a 1:1 bonus issue along with a third interim dividend of ₹0.07 per share for FY26. The record date for the bonus issue was later set as April 1 (Wednesday).
Since the markets will remain closed on March 31 (Tuesday) due to Shri Mahavir Jayanti, the stock effectively met the due date for the bonus issue today (the due date usually occurs one business day before the record date).
Bonus issues consist of free shares distributed by a company from its reserves and are often considered a sign of strong financial health and growth prospects. Although the issuance of free shares increases the total number of shares outstanding, it does not change the market capitalization of the company. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio. IRB Infrastructure Developers is a private integrated developer of highway and toll road infrastructure in India. It has an asset base of about Rs 80,000 crore across 12 states, according to its website.
Early last week, the company announced that its gross toll collection grew 22 percent year-on-year (y-o-y) to Rs 746 million in February 2026. This is higher than the Rs 613.8 million collected in February last year.
“The strong traffic growth across all our assets and the corresponding increase in toll revenue, including the full monthly contribution from the recently added Harihara IRB Corridor (TOT-17), are encouraging. Collection trends for TOT-17 are in line with our supply estimates. Toll collection growth has strengthened from around 15 percent last month to around 22 percent in the current month. With the likely start of tolling on another new asset TOT, we expect the upward momentum in toll revenue to continue in the coming months,” said Amitabh Murarka, CEO of the company.
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