IRB Infrastructure Developers Ltd announced on Friday May 30 that its associate entity IRB Infrastructure Trust has signed a binding term sheet to transfer three Build Operate Transfer BOT highway assets to the IRB InvIT Fund at an enterprise value of approximately 8450 crore The equity component of the deal is valued at around 4905 crore

The transaction includes the full transfer of equity in three tollway companies IRB Hapur Moradabad Tollway Ltd Kaithal Tollway Ltd and Kishangarh Gulabpura Tollway Ltd which together cover around 1800 lane kilometres The boards of both the Private and Public InvITs approved the agreement on May 30 following a non binding offer made earlier on May 8

Proceeds from the deal will be used to support upcoming road infrastructure projects estimated at 15000 crore This move aligns with IRB Group’s capital recycling strategy enabling it to unlock value from existing assets and reinvest in new projects The company aims to expand its total asset base from the current 80000 crore to 1.4 lakh crore over the next three years

Virendra D Mhaiskar Chairman and Managing Director of IRB Infrastructure stated that the funds from this transaction will allow the group to pursue new opportunities in the sector nearly double the size of the assets being transferred He also highlighted that the addition of these high revenue BOT projects will enhance the IRB InvIT Fund’s portfolio and its weighted average asset life

Shares of IRB Infrastructure Developers Ltd closed at 51.26 on the Bombay Stock Exchange down by 0.19 or 0.37 percent