IRB InvIT to acquire 3 road assets worth ₹8,436 cr from IRB InvIT Fund

The acquisition of three SPVs will expand IRB's O&M order book by Rs 3,100 crore and is part of a broader asset transfer strategy between its private and public InvIT platformsnn

IRB InvIT Fund, the publicly listed infrastructure investment trust (InvIT) sponsored by IRB Infrastructure Developers, is set to acquire three road assets at an enterprise value of Rs 8,436 crore from IRB Infrastructure Trust, the sponsor’s privately held InvIT.

 

The unitholders of the public InvIT have given their approval to the proposed acquisition of the 100 per cent equity share capital of three special purpose vehicles (SPVs)—Kaithal Tollway Limited, IRB Hapur Moradabad Tollway Limited, and Kishangarh Gulabpura Tollway Limited—from the private InvIT, with a majority of 96 per cent. The transaction was first announced in May this year.

 

The unitholders also approved a fundraise of up to Rs 5,000 crore to undertake the proposed acquisition and the appointment of the sponsor as the project manager of the InvIT to carry out the operations and maintenance (O&M) activities of the three SPVs.

 

These SPVs operate certain stretches of road projects on a design, build, finance, operate and toll (DBFOT) basis and are located in the states of Rajasthan and Uttar Pradesh, spanning approximately 1,800 lane kilometres.

 

Virendra D. Mhaiskar, chairman and managing director of IRB Infrastructure Developers, said: “We remain committed to enhancing unitholder value by actively exploring opportunities to add quality assets to the portfolio.” 

 

The public InvIT and the private InvIT executed a binding term sheet on 30 May 2025 for the acquisition. The proposed acquisitions are subject to the necessary regulatory approvals and compliances and will increase IRB Infrastructure Developers’ O&M order book by approximately Rs 3,100 crore.

 

Earlier, in a conversation with Business Standard, an IRB executive had said that IRB Infrastructure Developers aims to unlock capital through an asset transfer strategy between its two InvITs—one private and one public—to bid for toll-operate-transfer (TOT) projects.

 

IRB’s private InvIT serves as the development platform for the IRB Group. “The private InvIT will bid for assets, take on construction risk, and stabilise the asset. Once stabilised, the asset will be transferred to the public InvIT, which will generate a margin of 300 to 400 basis points, typically translating to two times price to book,” said Anil Yadav, director, investor relations, IRB Infrastructure Developers.