IRB Infra offers Vadodara Kim Expressway to IRB InvIT Fund

IRB Infrastructure Developers on Monday announced that it has offered Vadodara to Kim Expressway project, being developed under Hybrid Annuity Model (HAM), to IRB InvIT Fund.

The Vadodara Kim stretch, which is part of Delhi-Mumbai Expressway (DME), is 23.740 km-long and has project cost outlay of Rs 2,094 crore. The project recently received provisional COD and is revenue generating.

IRB Infra's board approved the preliminary non-binding proposal for transfer of the said project to the IRB InvIT Fund, which is a publicly offered and listed Infrastructure Investment Trust sponsored by the company.

Virendra D. Mhaiskar, chairman & managing director of the company said, "As next step to our strategy of unlocking capital to fuel further growth, we have presented a non-binding offer via Concept paper for transfer of our first HAM asset - VK1 to IRB InvIT Fund. The project offers meaningful cashflow visibility over 15 years to the Public InvIT and the transaction will release cash to IRB to fund its future pipeline. Post interaction with Public InvIT and its unitholders, formal offer will be made to take the process forward. We are hopeful of successfully closing the transaction within this calendar year." He added, "This would bring a win-win situation while enhancing value for all Stakeholders of IRB Infra and IRB InvIT Fund."

IRB Infra is an integrated roads and highways infrastructure developer, with major presence in the Build-Operate-Transfer (BOT) space.

On a consolidated basis, net profit of IRB Infrastructure Developers jumped 79% to Rs 174.50 crore on 10.7% decline in revenue from operations to Rs 1433.62 crore in Q4 FY22 over Q4 FY21.

IRB Infrastructure Developers fell 1.10% to Rs 224.95 while IRB InvIT Fund rose 1.73% to Rs 55.24 on the BSE.

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