IRB Infrastructure Developers has decided to transfer three major highway assets to its InvIT for ₹8,450 crore. The funds raised from this transaction will be used to finance new road infrastructure projects worth ₹15,000 crore. This move is part of the company's asset churn strategy, aiming to increase its asset base to ₹1.4 lakh crore.
₹8,450 Crore Deal to Secure New Funding
The IRB Infrastructure Developers board has approved an ₹8,450 crore deal. Under this agreement, the company will transfer the Hapur-Moradabad, Kaithal, and Kishangarh-Gulabpura BOT highway projects to its Public Infrastructure Investment Trust (InvIT). The total length of these three assets is approximately 1,800 lane kilometers.
The total equity value of these assets under the deal is estimated at approximately ₹4,905 crore. The company has signed a binding term sheet for this transaction.
Investment Planned in ₹15,000 Crore Road Projects
The funds from this deal will be used by the IRB Group to fund new road infrastructure projects worth ₹15,000 crore. This strategy is part of the company's asset churn strategy, aiming to recycle capital and invest in new projects. The company aims to increase its asset base from ₹80,000 crore to ₹1.4 lakh crore within the next three years.
Company Strategy and Future Plans
According to Virendra D. Mhaiskar, Chairman and Managing Director of IRB Infrastructure, the funding from this deal could also benefit the company for investments in other sectors in the future. He stated that this deal will add higher-revenue BOT highway assets to the company's InvIT portfolio and increase the portfolio's average age.
Slight Dip in Stock Market
IRB Infrastructure Developers' shares saw a slight decline on Friday. On the BSE, the company's share closed at ₹51.26, down ₹0.19 or 0.37 percent.
