IRB Infrastructure Developers Limited (IRB) has announced the complete sale of its stake in VM7 Expressway Private Limited to the IRB InvIT Fund, a publicly listed infrastructure investment trust sponsored by the company. This move, approved by IRB's Board of Directors, aligns with the company's 'Bid-Execute-Stabilize-Transfer' (B.E.S.T.) strategy aimed at unlocking capital for future growth.

Project Details

The VM7 Expressway project, also known as the Gandeva-Ena section, is a crucial part of the Delhi-Mumbai Greenfield Expressway. Here are the key details of the project:

Strategic Implications

The complete sale of the VM7 Expressway project to IRB InvIT Fund carries several strategic implications:

1. Capital Unlocking: This move is part of IRB's strategy to free up capital for future growth initiatives without fresh fund infusion.

2. Portfolio Expansion: IRB aims to potentially double its portfolio through this B.E.S.T. strategy.

3. InvIT Benefits: For the IRB InvIT Fund, this acquisition aligns with its strategy to acquire stable, revenue-generating assets with long-term cash flow visibility.

4. Risk Profile Balancing: The annuity-based revenue from NHAI is expected to balance the overall risk profile of the InvIT's portfolio.

5. Potential Unitholder Benefits: The acquisition is expected to enhance payouts for the InvIT's unitholders.

Transaction Details

The transaction represents a full divestment of the expressway asset to the company's infrastructure investment trust. The specific financial details of the sale have not been disclosed.

Management Commentary

Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure Developers Ltd., had previously commented on the development: "This step aligns with our Bid–Execute–Stabilize–Transfer strategy to unlock capital and drive growth. Offering our second HAM asset on this expressway to the Public InvIT provides long-term cashflow visibility to the InvIT while releasing funds to support IRB's future growth."

This strategic move by IRB Infrastructure demonstrates the company's focus on optimizing its asset portfolio while creating value for its stakeholders and those of the IRB InvIT Fund.

IRB Infrastructure Developers has announced significant corporate developments following its board meeting on December 21, 2025. The company's board approved material related party transactions and scheduled an Extraordinary General Meeting (EGM) for shareholder approval of major project agreements.

Board Meeting Outcomes

The Audit Committee and Board of Directors approved material related party contracts for project management services related to the TOT-17 project. The company will act as project manager for IRB Infrastructure Trust (Private InvIT) through IRB Harihara Corridors Private Limited, the project SPV.

TOT-17 Project Scope

The project management agreement covers comprehensive services for the Toll Operate and Transfer project spanning multiple highway corridors in Uttar Pradesh. The company will provide initial upgradation, operations and maintenance works, and overall project implementation services.

Shareholder Approval Process

The board has convened an Extraordinary General Meeting scheduled for January 13, 2026, to seek member approval for the material related party transactions. The EGM will be conducted in accordance with Section 100 of the Companies Act, 2013.

Related Party Structure

IRB Infrastructure Trust is an associate of the company, with IRB Infrastructure Developers holding 51% unit holding in the Private InvIT. The company serves as both sponsor and project manager for the trust, while MMK Toll Road Private Limited acts as the investment manager.

The transaction structure ensures arms-length dealings while leveraging the company's expertise in highway project management and operations across its infrastructure portfolio.