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IRB Infrastructure and Developers has completed the acquisition of the Gandeva Ena (VM7) Hybrid Annuity Model (HAM) highway assets, valued at around INR 1,200 crore, through its sponsored IRB InvIT Fund. The acquired assets form part of the upcoming New Delhi Greenfield Expressway and add further scale to the InvIT's operational portfolio. With this transaction, IRB InvIT Fund now owns 10 mature highway assets comprising eight Build-Operate-Transfer (BOT) and two HAM projects, covering 4,445 lane kilometres with a total asset value of approximately INR 17,600 crore. The acquisition has been funded through debt and is expected to enhance distributable cash flows and dividend payouts for unitholders over the medium to long term.
IRB Infrastructure and Developers on Monday announced the completion of its acquisition of the Gandeva Ena (VM7) Hybrid Annuity Model highway assets, with an estimated value of around INR 1,200 crore. The transaction has been executed through the company-sponsored IRB InvIT Fund, further strengthening the trust's portfolio of operational road assets. Advertisement
According to the company, the acquired assets form part of the upcoming New Delhi Greenfield Expressway, a strategically important infrastructure corridor expected to play a key role in improving regional connectivity. The addition of these assets aligns with IRB's strategy of consolidating mature and revenue-generating highway projects under its InvIT platform to deliver stable and predictable returns to investors.
With this acquisition, the IRB InvIT Fund's portfolio now comprises 10 operational highway assets, including eight Build-Operate-Transfer (BOT) projects and two Hybrid Annuity Model (HAM) projects. Collectively, these assets span 4,445 lane kilometres and have an aggregate asset value of approximately INR 17,600 crore. The growing scale of the portfolio enhances diversification across traffic profiles, concession structures and geographies, strengthening the trust's overall risk profile.
The Hybrid Annuity Model, introduced by the National Highways Authority of India in 2016, is a public-private partnership framework designed to balance risks between the government and private developers. Under the HAM structure, the authority provides a portion of the project cost during the construction phase, while the private developer invests the balance and receives fixed annuity payments linked to project milestones and performance. This model has gained traction among infrastructure developers and investors due to its relatively lower traffic risk and stable cash flow visibility.
Rushabh Gandhi, Executive Director and Chief Financial Officer of IRB Infrastructure Private Limited, which acts as the Investment Manager to the Trust, said the acquisition is expected to improve the InvIT's distributable cash flows and support higher dividend payouts for unitholders in the future. He added that the transaction has been funded through debt, enabling the trust to optimise its capital structure while preserving equity capital for future growth opportunities.
IRB Infrastructure, India's largest private toll roads and highways infrastructure developer, has a total asset base exceeding INR 90,000 crore spread across 13 states. This portfolio includes assets held directly by the parent company as well as those housed within its two InvIT platforms. The company has consistently used the InvIT route to recycle capital from operational assets, reduce balance sheet leverage and fund new project development.
The completion of the Gandeva Ena HAM asset acquisition underscores IRB's continued focus on strengthening its annuity-based revenue streams and deepening the role of InvITs in its long-term growth strategy, while contributing to the expansion of India's national highway infrastructure.
Source - PTI
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