IRB Infrastructure Developers Limited (Sponsor) sponsored IRB InvIT Fund’s unitholders (Unitholders) have approved the proposed acquisition of 100 per cent of the equity share capital of three special purpose vehicles (SPVs) that operate certain stretches of design, build, finance, operate and toll (DBFOT) road projects, from the Sponsor’s private InvIT, the IRB Infrastructure Trust (Private InvIT). The transaction is based on an agreed enterprise value of Rs 84.36 billion as of June 30, 2025.
- The Unitholders also give their approval for appointing the Sponsor as the project manager for the operation and maintenance (O&M) activities of the SPVs proposed to be acquired.
- The Sponsor’s O&M order book is expected to increase by approximately Rs 31 billion, taking the total order book to approximately Rs 336 billion post the acquisitions
IRB Infrastructure Developers Limited, India’s largest multi-national transport infrastructure developer company in the roads and highways sector in terms of lane kilometers as of March 31, 2025 has expressed its gratitude towards the Unitholders of IRB InvIT Fund, the publicly listed Infrastructure Investment Trust (Trust).
The Unitholders of the Trust have given their approval to the proposed acquisition of the 100 per cent equity share capital of three SPVs operating certain stretches of DBFOT road projects from the Private InvIT with a majority of approximately 96 per cent.
Unitholders also approved the fund raise for undertaking the aforementioned proposed acquisition and the appointment of the Sponsor as the project manager of the Trust to carry out the O&M activities of the three SPV proposed to be acquired.
Mr Virendra D Mhaiskar, chairman and managing director of the Sponsor said, “We are truly grateful to all the unitholders of the IRB InvIT Fund for demonstrating their strong trust and confidence in the Fund’s growth strategy by passing the resolutions,” he added. “We remain committed to enhancing unitholder value by actively exploring opportunities to add quality assets to the portfolio.”
The Trust and the Private InvIT have executed a binding term-sheet on May 30, 2025, for the acquisition by the Trust of 100 per cent of the equity share capital of three SPVs, each operating DBFOT road projects, from the Private InvIT, resulting in an enterprise value of Rs 84.36 billion as at June 30, 2025.
The proposed acquisitions are subject to the necessary regulatory approvals and compliances, will increase the Sponsor’s O&M order book approximately by Rs 31 billion.