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IRB InvIT Fund, sponsored by IRB Infrastructure Developers Ltd, raised INR 3,248.43 crore through an institutional placement of units, marking its first fund-raising since the 2017 launch. Investors holding more than 5% of units, excluding the sponsor, include Anahera Investment Pte. Ltd., Kotak Mahindra Bank, and CIM Investment Fund ICAV. The proceeds will partly fund the acquisition of three BOT highway assets: Hapur-Moradabad, Kaithal-Rajasthan Border, and Kishangarh-Gulabpura, with the associated Private InvIT expected to receive around INR 4,905 crore. This infusion positions the fund to pursue additional highway projects worth over INR 15,000 crore, strengthening IRB Group's development pipeline.
IRB InvIT Fund, sponsored and managed by IRB Infrastructure Developers Ltd, recently completed an institutional placement of units, raising a total of INR 3,248.43 crore, according to a company statement released earlier this week. This represents the fund's first fund-raising exercise since its launch and listing in 2017. The response to the placement was broad-based, reflecting strong investor confidence in the fund and the underlying infrastructure assets. Advertisement
After the institutional placement, investors holding more than 5% of units, excluding the sponsor, include Anahera Investment Pte. Ltd., Kotak Mahindra Bank Limited, and CIM Investment Fund ICAV. IRB Infrastructure Developers stated that the funds raised will be used to partially finance the acquisition of three key BOT highway assets: Hapur-Moradabad, Kaithal-Rajasthan Border, and Kishangarh-Gulabpura, all from the IRB Infrastructure Trust.
The company added that the IRB Infrastructure Trust (Private InvIT) is expected to receive approximately INR 4,905 crore as equity consideration upon completion of the transaction. This significant capital inflow will enable the Private InvIT to pursue new highway projects with a combined investment of over INR 15,000 crore, supporting the expansion of the group's highway portfolio and enhancing long-term growth prospects.
IRB Infrastructure Developers, as the sponsor and project manager of the InvIT Fund, holds around 16% stake in the fund. Virendra D. Mhaiskar, Chairman and Managing Director of the company, indicated that this fund-raising would allow the InvIT to strengthen its portfolio, improve distributions, and create sustained value for unitholders.
This development also highlights IRB's continued strategy of leveraging InvIT structures to mobilize large-scale infrastructure funding. By attracting major institutional investors, the fund demonstrates confidence in the quality of its assets and the group's ability to execute and expand its highway projects efficiently. It also provides the fund with the flexibility to undertake new projects while ensuring financial stability and predictable returns for unitholders.
The acquisition of these three highway assets aligns with IRB's ongoing plans to consolidate its presence in strategic road corridors across India, improving connectivity and contributing to infrastructure development in the country. The combined impact of this capital raise and asset acquisition is expected to reinforce the group's position in the infrastructure sector and facilitate steady growth in the coming years.
Source PTI
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