IRB InvIT Fund , an infrastructure investment trust, has announced plans to raise approximately ₹1,005 crore through a preferential issue of units. The fund has scheduled an Extraordinary Meeting of Unitholders on November 1, 2025, to seek approval for this significant capital raising initiative.

Key Details of the Preferential Issue

The proposed preferential issue involves the following key aspects:

Proposed Allottees

The preferential issue will be made to two entities:

1. IRB Infrastructure Developers Limited (Sponsor):

   • Subscribing to 11.97 crore units
   • Investment amount: ₹753 crore

2. Larsen and Toubro Limited (Non-sponsor):

   • Subscribing to 4 crore units
   • Investment amount: ₹252 crore

Purpose of the Fund Raise

The funds raised through this preferential issue will be utilized for partial funding of the acquisition of three tollway companies:

1. IRB Hapur Moradabad Tollway Limited
2. Kaithal Tollway Limited
3. Kishangarh Gulabpura Tollway Limited

Issue Price Determination

The issue price of ₹62.95 per unit has been determined based on the volume-weighted average prices, with the relevant date set as October 1, 2025.

Approval Process

The resolution for this preferential issue requires a special majority approval, with at least 60% of votes cast in favor. Unitholders will have the opportunity to participate in remote e-voting from October 27 to October 31, 2025. The cut-off date for voting eligibility has been set as October 25, 2025.

Meeting Details

The Extraordinary Meeting will be conducted through video conferencing on November 1, 2025, at 11:00 AM IST. This virtual format ensures maximum participation of unitholders regardless of their geographical location.

Impact on Unitholding Pattern

Post the preferential issue, assuming full subscription, the unitholding pattern of IRB InvIT Fund is expected to change as follows:

Conclusion

This preferential issue represents a strategic move by IRB InvIT Fund to raise capital for expanding its portfolio of toll road assets. The participation of both the sponsor and a major non-sponsor entity indicates confidence in the fund's growth prospects. Unitholders should carefully consider the proposal and exercise their voting rights accordingly.

IRB InvIT Fund , a prominent infrastructure investment trust, has announced significant capital raising initiatives to fuel its expansion plans. The fund has launched a Qualified Institutions Placement (QIP) to raise ₹3,000 crore, with an additional upsize option of ₹250 crore, potentially totaling ₹3,250 crore. Simultaneously, the fund's board has approved the issuance of non-convertible debt securities worth up to ₹1,800 crore.

QIP Details

The QIP comes with an indicative offer price of ₹60.00 per unit, representing a 2.80% discount to the last closing price. This move follows the fund's unitholder approval in July to acquire 100% equity in three special purpose vehicles (SPVs) operating DBFOT road projects from IRB Infrastructure Trust.

Acquisition Plans

The planned acquisitions, based on an enterprise value of ₹8,436.00 crore as of June 30, 2025, received overwhelming support from unitholders with a 96% majority. The unitholders also approved the appointment of the Sponsor as the project manager for operations and maintenance.

Impact on Sponsor

These acquisitions are expected to significantly expand the Sponsor's Operations & Maintenance (O&M) order book by approximately ₹3,100.00 crore, strengthening its position in the infrastructure sector.

Debt Issuance

In a separate but related development, the board of directors has approved raising debt through the issuance of non-convertible debt securities on a private placement basis. The aggregate amount of up to ₹1,800.00 crore will be raised in one or more tranches or series, targeting eligible investors as permitted under applicable laws.

Market Response

The market's initial reaction to these announcements was slightly negative, with IRB InvIT Fund shares closing at ₹61.64, down 0.85% on the BSE.

Governance and Execution

The board has authorized the Committee of Directors (COD) to oversee and execute all necessary steps related to both the QIP and the non-convertible debenture issuance. This move is aimed at ensuring efficient and timely implementation of these financial strategies.

These developments underscore IRB InvIT Fund's growth strategy and its commitment to expanding its infrastructure portfolio. The success of these initiatives could potentially reshape the fund's market position and financial structure in the future.