The IRB Infrastructure and Developers board on friday approved the transfer of three BOT (Build-Operate-Transfer) highway assets of IRB Infrastructure Trust to Public Infrastructure Investment Trust (InvIT). IRB Infrastructure and Developers said in an exchange filing that these three BOT assets are IRB hapur Moradabad Tollway, Kaithal Tollway and Kishangarh Gulabpura Tollway. The deal for 100% equity of these assets is to be done for Rs 8,450 crore. While the equity value of this deal is around Rs 4,905 crore. The binding term sheet has also been signed for this. These three assets are spread over about 1,800 lane kilometers.
The money raised will be used for this purpose
The money raised from this transaction will be used to fund new road infrastructure projects worth Rs 15,000 crore. This move is part of the IRB Group's Asset Churn Strategy, which aims to recycle capital for growth. The money that the IRB Infrastructure and Developers Board will receive from the deal for three highway assets will increase the asset base of the IRB Group from Rs 80,000 crore to Rs 1,40,000 crore in the next three years.
According to a CNBC report, the company's chairman and managing director Virendra D. Mhaiskar has said, "The company and IRB Infrastructure Trust can leverage the proceeds from this deal to fund many other sectors in the future, which is almost double the size of the assets being transferred. In addition, this expansion of the portfolio of IRB InvIT Fund aims to increase its average life with higher revenue generating BOT highway assets.''
Performance of the company's shares
Let us tell you that the shares of this company, which invests in road and highway projects in india under the BOT model, closed at Rs 51.26 on friday with a decline of Rs 0.19 or 0.37 percent on the BSE. The BOT model means that the company builds the road or highway and runs it itself for some time and then hands it over to the government..jpg)
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