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.

IRB InvIT Fund , a prominent infrastructure investment trust, has recently submitted its updated unitholding pattern to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) following a preferential issue of units. This submission, made by IRB Infrastructure Private Limited, the investment manager of the fund, is in compliance with the Securities and Exchange Board of India (SEBI) regulations.

Key Highlights of the Unitholding Pattern

The updated unitholding pattern reveals significant insights into the ownership structure of IRB InvIT Fund:

Detailed Breakdown

Total Outstanding Units

The fund now has 1,28,16,00,000 units outstanding after the preferential issue.

Sponsor and Related Parties

The sponsor group, including the investment manager and project manager, holds 17.73% of the total units. This includes:

• 16.57% held by bodies corporates
• 1.16% held by individuals/HUFs associated with the sponsor group

Public Unitholding

The majority of units (82.27%) are held by public unitholders, showcasing a diverse investor base.

Institutional Investors

Among public holders, institutions hold a significant portion:

• Foreign Portfolio Investors (FPIs) are the largest category, holding 35.11% of total units
• Mutual Funds account for 4.63% of the unitholding
• Financial Institutions/Banks hold 1.55% of the units

Non-Institutional Investors

• Individual investors hold 20.90% of the units
• Bodies corporates in the public category account for 16.94%

Compliance and Transparency

The submission of this unitholding pattern demonstrates IRB InvIT Fund's commitment to regulatory compliance and transparency. It provides investors and market participants with a clear view of the fund's ownership structure post the preferential issue.

This update is particularly relevant for investors and analysts tracking the infrastructure investment trust sector in India, as it reflects the current market interest and institutional participation in IRB InvIT Fund.

The detailed breakdown of unitholders across various categories offers valuable insights into the diverse investor base of the fund, which could be indicative of its appeal to different types of investors in the market.