The IRB InvIT Fund, sponsored by IRB Infrastructure Developers, has raised Rs 3,248.43 crore through an institutional placement. This is the fund’s first fundraising effort since its 2017 IPO. Along with assisting with general business needs, this raise will help partially finance the purchase of three build-operate-transfer (BOT) highway assets from the IRB Infrastructure Trust.
The acquisitions include important highway projects such as Hapur–Moradabad, Kaithal–Rajasthan Border, and Kishangarh–Gulabpura. Once completed, the InvIT’s portfolio will expand from eight BOT projects and one hybrid annuity model (HAM) asset to nine operational highway assets. This expansion will raise the portfolio’s enterprise value from Rs 7,800 crore to over Rs 16,000 crore. It will also extend the weighted average life of the assets by three years, bringing it to 17 years. Upon completion, the fund will own and operate 4,225 lane kilometres that are already in use.
According to media reports, Rushabh Gandhi, Chief Financial Officer, IRB Infrastructure, stated that the successful institutional placement marks a major step forward after the IPO and will help fund the acquisition of the three revenue-generating highway assets.
The placement size was increased from the original target of Rs 3,000 crore due to strong investor interest. A mix of long-term institutional investors, both domestic and international, along with prominent family offices, participated in the offering. Anahera Investment, Kotak Mahindra Bank, and CIM Investment Fund ICAV are among the key investors holding more than 5 per cent of the units (excluding the sponsor). The placement will be completed following approval for listing and trading from the stock exchanges. |
