IRB Infrastructure Trust has announced a preliminary and non-binding offer to sell two of its Build-Operate-Transfer (BOT) highway assets to the IRB InvIT Fund, with an estimated enterprise value of approximately ₹4,663 crore. The offer, approved by the Board of Directors of the Investment Manager of IRB Infrastructure Trust, involves the Solapur Yedeshi NH211 in Maharashtra and the Chittorgarh Gulabpura NH79 in Rajasthan, which together span 1,144 lane kilometres.

The transaction is part of IRB’s ongoing strategy to recycle capital from mature assets into new growth opportunities. This approach, termed the B.E.S.T. (Bid, Execute, Stabilize, Transfer) strategy, aims to efficiently manage capital and enhance the asset portfolio of the IRB InvIT Fund. The proposed sale is subject to regulatory approvals and consents.

Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure Developers Limited, highlighted the benefits of the transaction, stating that it would provide the IRB InvIT Fund with an extended concession life and additional revenue streams. He also noted that the proceeds from the sale would be used to fund future opportunities, aligning with the company’s growth objectives.

The Solapur Yedeshi NH211 asset in Maharashtra has an approximate asset value of ₹2,354 crore, while the Chittorgarh Gulabpura NH79 asset in Rajasthan is valued at approximately ₹2,309 crore. The assets are being offered under the Right of First Offer (ROFO) granted to the IRB InvIT Fund.

IRB Infrastructure Trust has previously transferred three BOT assets and one Hybrid Annuity Model (HAM) asset to the IRB InvIT Fund, enhancing its enterprise value to approximately ₹23,000 crore. The group aims to achieve an asset base of ₹1,40,000 crore by 2029.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).