IRB Invit Fund has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
IRB InvIT Fund (Public InvIT) has approved a binding term sheet to acquire 100% equity in three BOT tollway companies — IRB Hapur Moradabad Tollway, Kaithal Tollway, and Kishangarh Gulabpura Tollway — from IRB Infrastructure Trust (Private InvIT), which shares a common sponsor. The deal values the assets at an equity value of INR 4,905 crore, with a minimum enterprise value of INR 8,436 crore as of June 30, 2025. The Public InvIT will also provide shareholder loans to the target SPVs to repay existing subordinated debt owed to the Private InvIT. Additionally, IRB (as sponsor) will act as Project Manager for O&M works worth about INR 4,466 crore over the balance concession period (weighted average 20 years). The transaction is a related-party deal done at arm's length, subject to unitholder and regulatory approvals, with completion targeted by September 30, 2025. Post-acquisition, the portfolio will expand from 6 to 9 highway assets, doubling the asset base from ~INR 7,827 crore to ~INR 16,300 crore and extending weighted average asset life from ~14 to ~17 years.
This is a sizeable, growth-accretive acquisition for IRB InvIT Fund that doubles its asset base and extends the life of its portfolio, likely supporting higher long-term distributions per unit. However, as a related-party transaction involving the sponsor group, it requires unitholder approval and may be closely scrutinized by investors for valuation and conflict-of-interest concerns. Near-term, the stock could see some volatility pending the unitholder vote and regulatory clearances.