IRB Infra MD explains rationale behind non-binding offer to IRB InvIT Fund for five toll assets
IRB Infrastructure Chairman and Managing Director, Virendra Mhaiskar, explained that the move aligns with the company’s plan to capitalise on new growth opportunities by recycling capital.
IRB’s portfolio, spanning the listed entity and investments in private and public InvITs, has surpassed ₹80,000 crore.
“With a considerable size of portfolio having been created, we want to unlock some value. The value that gets unlocked we deploy in growing this portfolio further by undertaking newer projects, and that is the rationale behind this strategy,” he said
The total enterprise value of the five assets offered is estimated at over ₹16,000 crore.
IRB aims to leverage opportunities in the government’s Toll Operate Transfer (ToT) model. Mhaiskar also highlighted the government’s aggressive monetisation plans, stating, “We feel that this opportunity will continue to look strong in the future.”
The asset transfer process is expected to take five to six months, with regulations allowing an 18-month window for reinvestment of proceeds.
This timeline provides flexibility to identify and invest in high-quality assets, ensuring sustainable yield generation and growth.
Read Here | IRB Infrastructure’s September toll collection up 19% at ₹502 crore
IRB’s toll collection continues to show robust growth. In October 2024, toll revenue reached ₹540 crore, with key contributions from IRB MP Expressway in Maharashtra (₹142.6 crore) and IRB Ahmedabad-Vadodara Super Express Tollway (₹66.2 crore).
“Toll collections remain vibrant across our projects, and we expect them to grow strongly, irrespective of the political climate,” Mhaiskar said.
This Mumbai-based highway construction company, which has a market capitalisation of ₹28,685 crore, has seen its shares rise 26% over the last year.
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