IRB Infrastructure Trust Proposes Transfer of 5 Highway Assets to IRB InvIT Fund
IRB Infrastructure Trust, the Private InvIT associated with IRB Infrastructure Developers Limited, has announced a non-binding offer to transfer five mature highway assets to the IRB InvIT Fund, a publicly listed investment platform. This strategic move aims to enhance asset utilization within the group and is subject to the finalization of definitive documents and regulatory approvals. IRB Infrastructure, a leader in the roads and highways sector, continues to explore growth and optimization opportunities through its InvIT platforms.
Mr. Virendra D. Mhaiskar, Chairman & Managing Director of the Sponsors, stated, “This transfer is a key step in our B.E.S.T (Bid, Execute, Stabilize & Transfer) strategy, under which projects are initially developed under our private InvIT platform. Upon their completion and stabilization, these assets are then offered to the Public InvIT platform. This process not only maximizes value for all stakeholders of the IRB Group but also ensures sustained long-term benefits.”
He further added, “If completed, the transfer of these 5 assets to the Public InvIT will allow us to be self-sufficient in equity funding for upcoming sector opportunities that are being tendered by NHAI under TOT and BOT models. This is expected to drive significant growth, positioning our asset portfolio to reach Rs. 1,10,000 Crores in the coming years.”
As of Sep-24, the 5 assets are valued at ~ Rs 15,000 Crores of enterprise value, as outlined in the independent valuer's report of the Private InvIT. The exact value at which these assets are proposed to be transferred to the Public InvIT has not yet been determined and will be recorded in the definitive documents. These proceeds are expected to be reinvested into upcoming opportunities in the sector, including new BOT (Build-Operate-Transfer) and TOT (Toll-Operate-Transfer) projects at accretive returns.
IRB Infrastructure Developers will continue its role as the EPC (Engineering, Procurement, and Construction) player and O&M (Operations and Maintenance) contractor for all projects within both the Private InvIT and the Public InvIT, maintaining its position as project manager.
