IRB Infra sponsored IRB InvIT Fund completes acquisition of three highway assets

IRB Infrastructure Developers Limited, India’s leading and the largest multi-national transport infrastructure developer in the highways sector glad to report that its Sponsored IRB InvIT Fund has successfully completed the acquisition of three highway assets from the IRB Infrastructure Trust (Private InvIT sponsored by the Company).

Commenting on this milestone achievement, Virendra D. Mhaiskar, Chairman & Managing Director of the Company said, “The successful conclusion of this acquisition deal between the two InvITs marks a significant value enhancement to all the Stakeholders of the IRB Group. The unlocked Capital of Rs.4,905Crs through this acquisition deal will enable us to pursue upcoming opportunities in the sector worth over ₹15,000 Crores, further strengthening the Group’s development pipeline and growth prospects to achieve Rs.1,40,000 Crs mark in next three years” He further said, “The strong response from the marquee global and domestic investors in support of the deal is a testament to the trust and credibility that the IRB Group has built over last three decades. With conclusion of this deal, our InvIT platform has proven its worth as a transparent and scalable vehicle for long-term infrastructure investment. With the win-win situation achieved out of this deal, now both InvITs are well positioned to enhance their respective project portfolios, strengthen distributions, and create sustainable value for its Unitholders.”

With this, three highway assets of the IRB Infrastructure Trust, Viz. Hapur Moradabad NH-9 (Uttar Pradesh), Kaithal Rajasthan Border NH-152/65 (Haryana) and Kishangarh Gulabpura NH-79A (Rajasthan) have now become part of the Assets Portfolio of the IRB InvIT Fund.

The IRB InvIT Fund will be having a Project Portfolio of 9 Revenue Generating Highway Assets, including 8 BOT assets and 1 HAM asset of more than 4,200 Operational Lane Kilometers and an enterprise value of more than Rs.16,000Crs. The weighted average concession life of the Assets under IRB InvIT Fund will now be around 17 years from the existing 14 years.     

To facilitate this landmark acquisition, the Company Sponsored IRB InvIT Fund had undertaken the fund raise exercise, the first one since its launch and listing 2017 for acquisition of three assets of IRB Infrastructure Trust, with an enterprise value of Rs.8,436Crs. The exercise had witnessed strong and broad-based participation, reflecting the confidence of a diverse set of marquee long-term institutional investors, both foreign and domestic, along with several reputed family offices.