IRB InvIT Approves ₹2,744 Crore Road Asset Acquisition; Shares Trade Higher

Mumbai, July 2:IRB InvIT Fund has approved the proposed acquisition of two operational highway special purpose vehicles (SPVs) from IRB Infrastructure Trust (Private InvIT) in a transaction valued at ₹2,744 crore, subject to regulatory and unitholder approvals.

The board of directors of IRB Infrastructure Private Limited, the investment manager to IRB InvIT Fund, cleared the proposal at its meeting held on July 2, 2026.

The proposed transaction involves the acquisition of 100% equity in Solapur Yedeshi Tollway Limited (SYTL) and CG Tollway Limited (CGTL). Both SPVs are currently owned by Private InvIT and operate operational toll road assets.

The acquisition will be financed through a mix of equity and debt. The Trust will acquire the equity of the SPVs, while the debt currently held by Private InvIT is proposed to be refinanced or repaid after completion of the transaction.

Stock Market Snapshot

The announcement had a limited immediate impact on market trading.

As of 3:31 PM IST on July 2, IRB InvIT share price were trading at ₹60.64, up ₹0.15 or 0.25% for the day.

The modest move suggests investors are weighing the long-term benefits of the acquisition against the approvals and funding process that remains before the deal can be completed.

Deal Aims To Increase Cash Flows And Extend Asset Life

According to the filing, the acquisition is expected to strengthen the Trust’s investment portfolio by adding two revenue-generating road assets and increasing geographical diversification.

The combined enterprise value of the two SPVs has been estimated at ₹4,605 crore after accounting for external debt. Based on audited financial statements for FY2025-26, the two assets together generated revenue of ₹306.59 crore.

The Trust said the acquisition is also expected to improve the weighted average life of its portfolio, enhance long-term cash flow visibility and contribute to an increase in cumulative distribution per unit (DPU) over time.

The proposed acquisition is classified as a related-party transaction because both the Trust and Private InvIT have a common sponsor. However, the company said the transaction will be undertaken at arm’s length and in accordance with the SEBI InvIT Regulations.

To fund the acquisition, IRB InvIT also plans to raise up to ₹3,000 crore through institutional placements or other permitted modes, subject to statutory and unitholder approvals.

The acquisition is targeted for completion on or before September 30, 2026, while the long-stop date has been set as December 31, 2026, unless extended by mutual agreement.

Company Background

IRB InvIT Fund owns and operates a portfolio of toll road assets across India. Sponsored by IRB Infrastructure Developers, the Trust generates revenue primarily from toll collections and distributes a significant portion of its cash flows to unitholders.

The proposed addition of the Solapur Yedeshi and CG Tollway assets would further expand its operational road portfolio and deepen its presence in India’s highway infrastructure sector.

Conclusion

The proposed acquisition marks one of the larger transactions undertaken by IRB InvIT in recent years and reflects its strategy of expanding through mature, cash-generating road assets.

Completion of the deal will depend on regulatory clearances, approval from unitholders and successful execution of the proposed fund raise. If completed, the transaction is expected to enhance the Trust’s portfolio scale and strengthen long-term distribution potential.

Source:

• https://www.nseindia.com/get-quote/equity/IRBINVIT/IRB-InvIT-Fund
• https://nsearchives.nseindia.com/corporate/IRBINVIT_02072026150825_Disclosure_of_IRB_InvIT_Fund-July_2_2026_Sd.pdf