IRB InvIT Fund has approved the acquisition of VM7 Expressway Private Limited, a wholly-owned subsidiary of its sponsor, IRB Infrastructure Developers Limited. The Board of IRB InvIT Fund has given its approval for the acquisition at an enterprise value of INR 12,170.00 million, subject to regulatory approvals and unitholder consent.

Key Details of the Approved Acquisition

Here are the essential details of the approved acquisition:

Project Highlights

The VM7 Expressway project offers several features:

• Revenue-generating operational asset
• Located in Gujarat
• Turnover of INR 4,117.41 million
• Additional long-term operation and maintenance agreement

Rationale for the Acquisition

The acquisition aligns with IRB InvIT Fund's strategy to acquire revenue-generating assets. Key aspects include:

• Long-term visibility of cash flows through the operational project
• Potential to enhance the overall portfolio of the fund
• Additional revenue stream through the operation and maintenance agreement

Current Status and Way Forward

While the Board has approved the acquisition, the transaction is subject to:

• Regulatory approvals
• Unitholder consent

An Extraordinary General Meeting has been scheduled for December 24, 2025, to seek unitholder approval for the acquisition.

This acquisition represents a step for IRB InvIT Fund in expanding its infrastructure portfolio. The market will be watching the developments as the fund moves forward with this acquisition.

IRB InvIT Fund , India's first listed Infrastructure Investment Trust, has successfully completed a significant acquisition of three highway assets from IRB Infrastructure Trust, marking a substantial expansion of its portfolio. This strategic move, valued at Rs 8,436 crores, not only enhances the fund's asset base but also extends its geographical footprint into new states.

Key Highlights of the Acquisition

• Assets Acquired: 100% equity share capital of three Project SPVs:

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

• Investor Support: The acquisition was backed by marquee global and domestic investors, who infused approximately Rs 4,250 crores.

• Portfolio Expansion: With this acquisition, IRB InvIT Fund's project portfolio now includes:

  • 9 revenue-generating highway projects
  • An enterprise value of approximately Rs 16,000 crores
  • Over 4,200 operational lane kilometres

• Geographic Expansion: The fund has extended its footprint to Uttar Pradesh and Haryana.

• Concession Life: The weighted average life of concession has increased from 14 years to 17 years.

Impact on IRB InvIT Fund's Portfolio

Management Commentary

Mr. Rushabh Gandhi, Director and CFO of IRB Infrastructure Private Limited (the Investment Manager of IRB InvIT Fund), expressed gratitude to investors, stating, "We are deeply grateful to all our investors for their overwhelming response and continued trust in IRB InvIT's strategy and growth vision. The success of the acquisition marks a significant milestone in our journey."

Mr. Virendra D. Mhaiskar, Chairman & Managing Director of the Sponsor, commented on the deal's significance: "The successful conclusion of the acquisition deal between the two InvITs will be a very good value enhancement to the Stakeholders of all three entities, i.e., IRB Infra as well as both the InvITs." He further emphasized that the strong investor response demonstrates the trust and credibility that the IRB Group has built over the last three decades.

Implications for Investors

This acquisition represents a significant step in IRB InvIT Fund's growth strategy. The expanded portfolio and increased concession life could potentially lead to enhanced distributions and sustained value creation for unitholders. The trust's ability to attract substantial investor support for this acquisition also underscores market confidence in its business model and growth prospects.

As the infrastructure sector continues to play a crucial role in India's economic development, strategic moves like this acquisition position IRB InvIT Fund to capitalize on the sector's growth opportunities while providing investors with exposure to a diverse and expanding portfolio of highway assets.

Investors and market watchers will likely keep a close eye on how this acquisition translates into financial performance and unitholder returns in the coming quarters.