IRB InvIT Fund acquires 3 BOT assets from IRB Infra Trust for Rs 4,905 cr

IRB InvIT to acquire three BOT highway assets for Rs 4,905 crore, doubling its enterprise value to over Rs 16,000 crore and extending portfolio life to 17 years

IRB InvIT Fund, India’s first listed infrastructure investment trust (InvIT), has signed a binding term sheet with the IRB Infrastructure Trust—the private InvIT associate of IRB Infrastructure Developers—for acquiring its three build–operate–transfer (BOT) highway assets for a consideration of Rs 4,905 crore.

 

A spokesperson for IRB InvIT Fund said, “This acquisition will be a remarkable milestone, expanding our portfolio to nine projects with the addition of these three high-revenue BOT highway assets and doubling our enterprise value to over Rs 16,000 crore. Our strategy remains focused on enhancing stakeholder value, and we will continue to explore opportunities to acquire lucrative assets, structuring our public InvIT as a perpetual InvIT to ensure sustained long-term value for our stakeholders.”

   

On 8 May, IRB InvIT Fund received a non-binding offer from the IRB Infrastructure Trust to acquire its three BOT assets—Hapur to Moradabad Highway, Kaithal–Rajasthan Highway, and Kishangarh to Gulabpura Highway—admeasuring around 1,800 kilometres, with an aggregate enterprise value of around Rs 8,450 crore and a corresponding equity value of Rs 4,905 crore. 

 

IRB InvIT Fund was formed to provide long-term, sustainable returns to unitholders by operating a portfolio of stable road assets. The proposed acquisition aligns with this strategy, as it will increase the weighted average life of the portfolio from approximately 14 years to around 17 years.

 

“This acquisition not only provides immediate value accretion but also establishes a clear trajectory for sustainable, long-term growth and its credentials as a robust investment platform. The platform’s expanding asset base and extended portfolio life are expected to attract a broader pool of capital, further enhancing the InvIT’s growth prospects,” the InvIT noted.

 

IRB InvIT Fund is a trust settled by its sponsor, IRB Infrastructure Developers, and is registered under SEBI’s InvIT Regulations, 2014.

 

The trust, set up to own, operate and maintain a portfolio of highway concessions, currently manages six operational highway assets—including five BOT assets and one hybrid annuity model asset—with an aggregate value of Rs 7,827 crore, spread across Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu, and Punjab. With the addition of the three new assets, the InvIT’s asset base will grow to Rs 16,300 crore.