IRB Invit Fund has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
IRB InvIT Fund has sent a Postal Ballot Notice dated May 30, 2025 seeking unitholder approval on three key proposals. Proposal 1 is the acquisition of three toll road assets — IRB Hapur Moradabad Tollway, Kaithal Tollway, and Kishangarh Gulabpura Tollway — from related party IRB Infrastructure Trust (Private InvIT) at an equity value of Rs. 4,905 crore and enterprise value of Rs. 8,436 crore, which represents a 3% discount to the independent valuer's (Grant Thornton) assessment. Proposal 2 covers a Project Implementation Agreement with the sponsor IRB Infrastructure Developers Limited worth approximately Rs. 4,466 crore on a fixed-price basis over a weighted average concession period of about 20 years. Proposal 3 seeks approval to raise up to Rs. 5,000 crore through institutional placement, further public offer, rights issue, or debt (term loans, NCDs) in one or more tranches to fund the acquisition and related purposes. This is a related-party transaction (common sponsor) representing about 62.67% of the Trust's asset value, so related parties and their associates are barred from voting. Voting opens June 4, 2025 and closes July 3, 2025.
If approved, the Trust's portfolio will expand significantly and weighted average concession life will extend from ~14 to ~17 years, supporting distribution-per-unit accretion over time. Unitholders should weigh the strategic benefits (longer-life toll assets, DPU growth, geographic diversification) against the potential dilution from a Rs. 5,000 crore unit issuance and the related-party nature of the deal, though the 3% discount to fair value is favorable.