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.

IRB Infrastructure Developers , India's first listed Infrastructure Investment Trust, has successfully completed a significant fund-raising initiative, marking its first such activity since its initial public offering in 2017. The fund raised Rs 3,248.43 crore through an Institutional Placement (IP) of units, exceeding its initial target of Rs 3,000 crore.

Key Highlights of the Institutional Placement

Investor Participation and Impact

The IP witnessed strong participation from both global and domestic institutional investors, reflecting confidence in the Indian infrastructure sector and the InvIT platform. Post-allotment, key investors holding more than 5% of the units (excluding the sponsor) include:

1. Anahera Investment Pte. Ltd.
2. Kotak Mahindra Bank Limited
3. CIM Investment Fund ICAV

Strategic Acquisitions and Portfolio Expansion

The funds raised will be utilized to partly finance the acquisition of three Build-Operate-Transfer (BOT) highway assets from IRB Infrastructure Trust:

1. Hapur-Moradabad
2. Kaithal-Rajasthan Border
3. Kishangarh-Gulabpura

Post-acquisition, IRB InvIT Fund's portfolio will expand significantly:

Management Commentary

Mr. Rushabh Gandhi, Chief Financial Officer of IRB Infrastructure Private Limited (the Investment Manager of IRB InvIT Fund), stated, "The success of the Institutional Placement marks a significant milestone in our journey since IPO. The proceeds will be utilized to part fund the proposed acquisition of three revenue-generating highway assets from IRB Infrastructure Trust."

Mr. Virendra D. Mhaiskar, Chairman & Managing Director of the Sponsor, IRB Infrastructure Developers Ltd., added, "This strong response from marquee global and domestic investors is a testament to the trust and credibility that IRB Group has built over the years. The successful closure of the Institutional Placement underscores investor confidence in the Indian infrastructure growth story and in the InvIT platform."

Future Outlook

The completion of these acquisitions is expected to strengthen IRB InvIT Fund's position in the infrastructure sector. The fund will expand its footprint across multiple states, including Uttar Pradesh and Haryana. The remaining funds for the acquisition are anticipated to be secured through preferential issuance and debt financing.

This strategic move is likely to enhance IRB InvIT Fund's portfolio, potentially leading to stronger distributions and sustained value creation for unitholders. The successful fund-raise also highlights the growing investor interest in India's infrastructure sector and the maturation of the InvIT model as a viable investment vehicle.

As the infrastructure sector continues to play a crucial role in India's economic growth, developments such as this are likely to be closely watched by investors and industry observers alike.