IRB Infra to transfer project to IRB InvIT for Rs 544 crore

IRB Infrastructure Developers on Thursday said it will raise Rs 544 crore by transferring its Pathankot–Amritsar project to IRB InvIT. This will be the seventh project the company will transferring to IRB InvIT after the launch and listing of India's first InvIT Fund in May 2017.

"IRB Infrastructure Developers Ltd will transfer its Pathankot–Amritsar highway project to the IRB InvIT by September 30, 2017. As a result of this, IRB Infra will receive Rs 544 crore," IRB Infra Developers said in a statement.

The unitholders of IRB InvIT Fund have approved the acquisition of IRB Pathankot Amritsar Toll Road Ltd, a Special Purpose Vehicle that manages the project, for an enterprise value of Rs 1,569.33 crore, it said.

"We are happy to have been able to establish the quality of our projects through the launch of IRB InvIT and now through transfer of additional asset post listing. We are also grateful to IRB InvIT and its unitholders for showing trust in the company by approving the acquisition of this project," a company spokesperson said.

Earlier, the company had transferred its six operational toll road projects to the IRB InvIT, namely Surat–Dahisar highway project; Jaipur–Deoli highway project; Talegaon–Amaravati highway project; Tumkur–Chitradurg highway projectl; Bharuch–Surat highway project and Omalur–Salem Namakkal highway project.

IRB Infrastructure Developers Ltd (IRB) is one of the largest private roads and highways infrastructure developers. It is the first Infrastructure developer that launched and listed of an InvIT Fund in the country.

The listing of InvIT enables promoters of infrastructure to monetise completed assets and raise funds for other long- term projects.