IRB InvIT Fund Announces Acquisition of 3 Highway Assets Worth ₹8,436 Cr

India’s first listed Infrastructure Investment Trust (InvIT), IRB InvIT, has secured ~96% approval from its unitholders, including institutional investors, for acquiring full equity stakes in three DBFOT road project SPVs: Kaithal Tollway Ltd, IRB Hapur Moradabad Tollway Ltd, and Kishangarh Gulabpura Tollway Ltd, from a private InvIT.

Unitholders also approved fundraising for the acquisition and the appointment of the Sponsor as Project Manager to oversee the operation and maintenance of these SPVs. The move marks a significant step in expanding IRB InvIT’s asset base and operational capabilities.

A spokesperson of IRB Infrastructure Private Limited, the investment manager (“Investment Manager”) of the Trust said, “This endorsement marks a key milestone in the Fund’s growth journey, reaffirming its disciplined strategy and long-term vision. The vote outcome validates ongoing initiatives and sets the stage for the next phase of expansion.” He further said, “This acquisition aligns with our strategy to add high-quality, value-accretive assets. With this, the portfolio’s average life increases from 14 to 17 years, and Enterprise Value doubles, from ₹7,800 crore (as at March 31, 2025), to over ₹16,000 crore. We remain focused on consistently enhancing stakeholder value.”

To reiterate, on May 30, 2025, the IRB InvIT Fund entered into a binding term sheet with the IRB Infrastructure Trust (the Private InvIT) to acquire 100% of the equity share capital of three SPVs — Kaithal Tollway Limited, IRB Hapur Moradabad Tollway Limited, and Kishangarh Gulabpura Tollway Limited — which operate BOT (DBFOT) road projects, spanning approximately 1,800 lane kilometers. The proposed acquisition implies an enterprise value of approximately ₹8,436 crore and a corresponding equity value of ₹4,905 crore.

The proposed acquisition is subject to necessary compliances and approvals.

Subject to the proposed acquisition, the Trust is expected to have expanded its presence in two other states, viz, Uttar Pradesh and Haryana through its expanded project portfolio of nine operational and revenue generating assets in its portfolio, which include eight build-operate-transfer assets and one hybrid annuity model Asset.