IRB Infrastructure Developers Limited has announced a significant transaction involving its infrastructure trust and InvIT fund. The company's subsidiary, IRB Infrastructure Trust, has executed a share purchase agreement with IRB InvIT Fund for the transfer of three Project Special Purpose Vehicles (SPVs) valued at ₹8,436.00 crore.

Transaction Details

The share purchase agreement, dated October 2, 2025, outlines the transfer of 100% equity share capital of three project SPVs from IRB Infrastructure Trust (Private InvIT) to IRB InvIT Fund (Public InvIT). The three SPVs involved in this transaction are:

1. IRB Hapur Moradabad Tollway Limited (IRBHMTL)
2. Kaithal Tollway Limited (KTL)
3. Kishangarh Gulabpura Tollway Limited (KGTL)

Financial Implications

The parties have agreed to an equity value of ₹4,905.00 crore for the SPVs, resulting in a minimum enterprise value of ₹8,436.00 crore. The consideration for this transaction will be received in cash, marking a significant monetary exchange in the infrastructure sector.

Project Details

IRB Hapur Moradabad Tollway Limited (IRBHMTL)

Incorporated on April 18, 2018, this SPV is responsible for the six-laning of Hapur bypass to Moradabad Section, including Hapur bypass from Km 50.000 to Km 148.277 of NH 24 (New NH-9) in Uttar Pradesh.

Kaithal Tollway Limited (KTL)

Established on June 11, 2014, KTL is tasked with the four-laning of Kaithal to Rajasthan Border section of NH-152/65 from km 33+250 to km 241+580 in Haryana.

Kishangarh Gulabpura Tollway Limited (KGTL)

Incorporated on January 12, 2017, this SPV is handling the six-laning of Kishangarh to Gulabpura Section of NH 79A and NH 79 in Rajasthan, covering a length of 90.000 km.

Impact on IRB Infrastructure Trust

These three SPVs collectively contributed approximately ₹469.00 crore (about 8.80%) towards the Trust's consolidated turnover and approximately ₹8,518.00 crore (about 14.00%) towards the Enterprise Value of the Trust for the financial year 2024-25.

Transaction Timeline

The share purchase agreement was signed on October 2, 2025. The expected completion date for the sale is on or before October 31, 2025, subject to mutual agreement between the parties.

Related Party Transaction

This transaction falls under the category of related party transactions. IRB Infrastructure Developers Limited, which is the Sponsor of IRB Infrastructure Trust, also functions as the Sponsor of IRB InvIT Fund. However, the company has affirmed that these related party transactions are being conducted at arm's length.

Regulatory Compliance

The transaction is subject to receipt of relevant approvals, and the company has duly informed the stock exchanges about this development as part of its regulatory obligations under the SEBI Listing Obligations and Disclosure Requirements (LODR).

This strategic move by IRB Infrastructure Developers Limited represents a significant reshuffling of assets within its group entities, potentially aimed at optimizing its infrastructure portfolio and unlocking value for investors.

IRB Infrastructure Developers , now part of the Ferrovial & GIC group, has demonstrated resilience in its toll revenue growth despite challenging weather conditions. The company reported a 9% year-to-date increase in toll growth, even as the early arrival of monsoons threatened to dampen progress.

Strong August Performance

August proved particularly robust for IRB Infrastructure, with toll revenues surging 12% year-over-year. This growth was primarily driven by the company's private Infrastructure Trust assets, showcasing the strength of its strategic investments.

Mumbai-Pune Expressway Boost

The iconic Mumbai-Pune expressway, a key asset in IRB's portfolio, witnessed a notable uptick in performance. Toll revenue from this crucial route increased by 5%, a significant improvement from the sub-2.5% growth observed in the previous year.

Diverse Asset Performance

While the Mumbai-Pune expressway showed improved results, other roads in IRB's portfolio demonstrated even stronger growth. These assets recorded a 10% increase in toll revenue, contributing substantially to the company's overall performance.

Strategic Developments

IRB Infrastructure has been making strategic moves to enhance its market position:

1. IRB Public InvIT Transformation: The company's IRB Public InvIT received approval from minority shareholders to transform into a high-yield growth annuity. This move is expected to provide a more stable and attractive investment proposition.

2. GIC-Backed Investment: The Competition Commission of India (CCI) has approved an investment from a GIC-backed fund, potentially strengthening IRB's financial position and growth prospects.

3. New Concessions: Over the fiscal years 2023 and 2024, IRB won concessions worth $1.90 billion, expanding its project portfolio significantly.

4. National Monetisation Pipeline: The company has expressed its intention to participate in the National Monetisation Pipeline, which could open up new opportunities for growth and asset acquisition.

Market Outlook

Despite the current market price of ₹40.83, analysts maintain a target price of ₹72 for IRB Infrastructure Developers. This optimistic outlook is based on the potential benefits from equity releveraging and the company's strong performance in challenging conditions.

Conclusion

IRB Infrastructure Developers continues to demonstrate robust growth in its toll revenues, particularly in its private Infrastructure Trust assets. With strategic transformations underway and a strong pipeline of projects, the company appears well-positioned to capitalize on opportunities in the infrastructure sector. However, investors should conduct their own research and consider market risks before making investment decisions.