IRB Infra to transfer road asset worth ₹1,702 cr to its public InvIT

IRB Infra moves to transfer its ₹1,702-crore Gandeva Ena HAM project to IRB InvIT, aligning with its BEST strategy to unlock capital and support future growth

IRB Infrastructure Developers (IRB Infra) has offered its Gandeva Ena hybrid annuity model (HAM) project worth ₹1,702 crore to IRB InvIT Fund, its public infrastructure investment trust (InvIT).

 

The company’s board of directors, in its meeting held today (Thursday), approved the preliminary non-binding proposal for the transfer of the project.

 

The 27.5-kilometre stretch forms a part of the upcoming Delhi–Mumbai Greenfield Expressway Project. The project includes eight-laning work of the Gandeva Ena stretch in Gujarat under the National Highways Authority of India (NHAI) Package-VII of Bharatmala Pariyojana.

 

“This step aligns with our Bid–Execute–Stabilize–Transfer (BEST) strategy to unlock capital and drive growth. Offering our second HAM asset on this expressway to the public InvIT provides long-term cash flow visibility to the InvIT while releasing funds to support IRB’s future growth,” Virendra Mhaiskar, chairperson and managing director of the company, said, adding that the transaction could be closed in the current calendar year.

 

Gandeva Ena HAM Project had recently received a provisional completion certificate and is a revenue-generating operational asset that is currently part of the company’s portfolio. The project is being implemented by VM7 Expressway Private Limited, a wholly-owned subsidiary of IRB Infra, under a concession awarded by the NHAI.

 

Earlier, IRB Infrastructure Trust, the private InvIT sponsored by IRB Infra, received the Letter of Award (LoA) from NHAI for the toll-operate-transfer-17 (TOT-17) bundle valued at ₹9,270 crore.

 

IRB has an asset base of over ₹80,000 crore across the parent company and two InvITs, excluding TOT-17. After adding the TOT-17 project to IRB Group’s project portfolio (including private and public InvIT), it will have 27 highway projects that include 18 build-operate-transfer (BOT), 5 TOT and 4 HAM projects.