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IRB InvIT Fund has completed the acquisition of three tollway special purpose vehicles (SPVs) IRB Hapur Moradabad Tollway Ltd (IHMTL), Kaithal Tollway Ltd (KTL), and Kishangarh Gulabpura Tollway Ltd (KGTL) from IRB Infrastructure Trust. The equity deal, valued at INR 4,905 crore, adds assets with a combined enterprise value of INR 8,436 crore. Collectively, these assets reported a turnover of INR 469.31 crore in FY25. The acquisition is set to diversify the fund's portfolio, enhance long-term revenue stability, and extend the weighted average life of its assets.
IRB InvIT Fund has signed definitive agreements to acquire a 100% stake in three road project SPVs from IRB Infrastructure Trust in a deal involving INR 4,905 crore in equity. The minimum enterprise value of the assets is pegged at INR 8,436 crore. The SPVs IRB Hapur Moradabad Tollway Ltd (IHMTL), Kaithal Tollway Ltd (KTL), and Kishangarh Gulabpura Tollway Ltd (KGTL) together recorded a turnover of INR 469.31 crore in the last fiscal year. Unitholders approved the transaction earlier this year, and the acquisition is expected to close by the end of October. Advertisement
The acquisition aligns with the fund's strategic objectives of expanding its portfolio, achieving geographical diversification, and strengthening long-term revenue streams. The fund expects this move to increase the weighted average life of its assets and contribute to higher cumulative distributions per unit (DPU) over time, thereby enhancing returns for investors.
IHMTL was incorporated in April 2018 to implement the six-laning of the Hapur bypass to Moradabad section of NH 24 in Uttar Pradesh under NHDP Phase V, also part of the Bharatmala Pariyojana, on a design, build, finance, operate, and transfer (DBFOT) toll basis. KTL, incorporated in June 2014, covers the four-laning of the Kaithal to Rajasthan border section of NH 152/65 in Haryana under NHDP Phase IV on DBFOT toll terms. KGTL, incorporated in January 2017, handles the six-laning of the Kishangarh to Gulabpura section of NH 79A and NH 79 in Rajasthan under NHDP Phase V, Package I, also on a DBFOT toll basis.
The addition of these assets not only expands the fund's portfolio but also brings in well-established operational highways that are expected to generate steady toll revenues. These projects are significant within their respective regions for improving connectivity and supporting economic activity along key national highway corridors.
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