IRB Infrastructure Trust to transfer 2 BOT assets in ₹4,605 crore deal

IRB Infrastructure Trust will transfer two operational BOT highway projects to its listed InvIT as part of its capital recycling strategy, boosting its O&M order book by about Rs 2,400 crore

IRB Infrastructure Developers' privately held infrastructure investment trust (InvIT), IRB Infrastructure Trust, has signed a binding term sheet to transfer two operational build-operate-transfer (BOT) highway projects with a combined enterprise value of ₹4,605 crore to its publicly listed InvIT, IRB InvIT Fund, as part of the company’s capital recycling strategy.

 

This definitive agreement follows the non-binding offer exchanged on May 14, 2026. The boards of directors of the investment managers of both entities have agreed to proceed with the deal at their respective board meetings held on Thursday.

 

IRB will be the project manager of the aforesaid two BOT projects after their transfer to the IRB InvIT Fund. This will increase the company’s operations and maintenance (O&M) order book by approximately ₹2,400 crore.

   

Virendra Mhaiskar, chairperson and managing director of IRB Infrastructure Developers, said, “The signing of this binding term sheet represents another successful iteration of IRB’s B.E.S.T. (Bid, Execute, Stabilise, Transfer) strategy, underscoring the strength of our capital recycling model. By periodically monetising mature assets and redeploying the released capital through the private InvIT into new opportunities, we are creating a self-sustaining growth platform that compounds shareholder value without incremental equity infusion at the sponsor level.”

 

Mhaiskar further added that the transaction strengthens both InvITs by enhancing the public InvIT’s portfolio with seasoned, high-quality, revenue-generating assets and a longer weighted average concession life, while replenishing the private InvIT’s capital for future acquisitions and development.

 

“This scalable model cements IRB’s transition into a premier sponsor and O&M platform, accelerating our progress towards building an asset base of ₹1.4 trillion over the next three to four years,” Mhaiskar added.

 

Earlier, IRB Group and its two sponsored InvITs collectively reported toll revenue of ₹843 crore in May 2026, up 25 per cent year on year.