IRB Infrastructure Developers Limited has announced a significant expansion of its sponsored IRB InvIT Fund, marking a notable development in India's infrastructure sector. The fund has successfully acquired three highway projects from IRB Infrastructure Trust, bolstering its asset portfolio and geographical presence.

Key Acquisition Details

The acquisition, valued at ₹8,436.00 crore, involves three key highway assets:

1. Hapur Moradabad NH-9 in Uttar Pradesh
2. Kaithal Rajasthan Border NH-152/65 in Haryana
3. Kishangarh Gulabpura NH-79A in Rajasthan

This strategic move has expanded IRB InvIT Fund's footprint to two additional states - Uttar Pradesh and Haryana.

Enhanced Portfolio Metrics

Following this acquisition, IRB InvIT Fund's project portfolio has seen significant growth:

The updated portfolio now includes 8 BOT (Build-Operate-Transfer) assets and 1 HAM (Hybrid Annuity Model) asset.

Financial Implications

To facilitate this acquisition, IRB InvIT Fund conducted its first fund-raising exercise since its 2017 launch and listing. The fund raise attracted strong participation from diverse marquee long-term institutional investors, both foreign and domestic, as well as reputed family offices.

Management's Perspective

Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure Developers Limited, commented on the acquisition: "The successful conclusion of this acquisition deal between the two InvITs marks a significant value enhancement to all the Stakeholders of the IRB Group. The unlocked Capital of Rs.4,905.00 Crores through this acquisition deal will enable us to pursue upcoming opportunities in the sector worth over ₹15,000.00 Crores, further strengthening the Group's development pipeline and growth prospects to achieve Rs.1,40,000.00 Crs mark in next three years."

Market Position

This acquisition reinforces IRB Infrastructure Developers' position as a leading player in India's infrastructure sector:

• Largest integrated private toll roads and highways infrastructure developer in India
• Asset base of approximately ₹80,000.00 crore across 12 states
• Operations spanning around 15,500 Lane Kms
• 33% market share in the TOT (Toll-Operate-Transfer) space
• 14% share in the Golden Quadrilateral Project
• 12% share in India's North-South highway connectivity

The successful completion of this acquisition demonstrates IRB InvIT Fund's capability as a transparent and scalable vehicle for long-term infrastructure investment, potentially setting a precedent for similar transactions in the sector.

As India continues to focus on infrastructure development, deals of this nature are likely to play a crucial role in attracting investment and facilitating the growth of the country's highway network.

IRB Infrastructure Developers Limited (IRB) has inked a significant agreement with IRB InvIT Fund, marking a substantial development in the infrastructure sector. The company has signed project management service agreements for three key projects, with a combined value of ₹4,466.00 crores over a 20-year period.

Deal Highlights

Project Details

HMTL Project

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.

KTL Project

Four-laning of Kaithal to Rajasthan Border section of NH-152/65 from km 33+250 to km 241+580 in Haryana.

KGTL Project

Six-laning of Kishangarh to Gulabpura Section of NH 79A and NH 79 in Rajasthan, spanning 90.000 km.

Key Points

• The agreement follows the transfer of 100% equity share capital of each Project SPV from IRB Infrastructure Trust to the IRB InvIT Fund.
• The deal is structured on a fixed price basis, inclusive of applicable taxes.
• This transaction does not fall under related party transactions as per SEBI regulations.
• IRB Infrastructure Developers does not hold any shareholding in the entities with whom the agreement is executed.

This strategic move by IRB Infrastructure Developers to manage these significant highway projects underscores the company's strong position in the infrastructure sector. The long-term nature of the agreement provides a stable revenue stream for the company over the next two decades, potentially enhancing its market position in the infrastructure development and management space.