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IRB Infrastructure Developers Ltd has announced that its sponsored platforms, IRB Infrastructure Trust and IRB InvIT Fund, have entered into a binding term sheet for the transfer of two build-operate-transfer (BOT) highway assets at an enterprise value of INR 4,605 crore. The transaction involves highway projects in Maharashtra and Rajasthan and has received approval from the boards of the investment managers of both entities. The company said the transfer forms part of its asset monetisation and platform strategy, while supporting its long-term objective of expanding its infrastructure asset base through its sponsor and operations and maintenance platform.
IRB Infrastructure Developers Ltd has signed a binding term sheet through its sponsored platforms, IRB Infrastructure Trust and IRB InvIT Fund, for the transfer of two build-operate-transfer (BOT) highway assets at an enterprise value of INR 4,605 crore. The transaction, approved by the boards of the investment managers of both entities during meetings held in the past week, forms part of the company's infrastructure asset platform strategy.
The assets proposed to be transferred from IRB Infrastructure Trust to IRB InvIT Fund comprise the Solapur–Yedeshi section of NH211 in Maharashtra and the Chittorgarh–Gulabpura section of NH79 in Rajasthan. Both projects operate under the build-operate-transfer model, under which private developers construct, operate and maintain highway infrastructure for a concession period before transferring the assets back to the government authority.
According to the company, the execution of the binding term sheet marks the next stage in the proposed transaction between the two sponsored platforms. The transfer will be undertaken at an agreed enterprise value of INR 4,605 crore, subject to the completion of applicable processes and transaction requirements.
IRB Infrastructure Developers stated that the boards of directors of the investment managers of both IRB Infrastructure Trust and IRB InvIT Fund had approved proceeding with the transaction during their respective board meetings. The company did not disclose a timeline for completion of the asset transfer.
Commenting on the development, Chairman and Managing Director Virendra D. Mhaiskar said the transaction reflected the scalability of the group's business model and reinforced its transition towards becoming a sponsor and operations and maintenance (O&M) platform. He stated that the strategy was expected to support the company's objective of building an infrastructure asset base worth approximately INR 1,40,000 crore over the next three to four years.
The proposed transfer is part of IRB's broader approach of moving operational infrastructure assets into its sponsored infrastructure investment trust platform, allowing the company to recycle capital while continuing to manage and operate completed assets. Infrastructure Investment Trusts (InvITs) are commonly used in the infrastructure sector to hold revenue-generating operational assets and provide long-term returns to investors while enabling developers to monetise completed projects for future investments.
The transaction strengthens IRB's sponsored InvIT platform by adding two operational toll road assets located in Maharashtra and Rajasthan, while supporting the group's long-term capital recycling and infrastructure development strategy.
Source - PTI
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