IRB Infrastructure Developers Limited has signed a binding term sheet to transfer two operational build-operate-transfer (BOT) highway assets to the IRB InvIT Fund, valued at ₹4,605 crore, as part of its capital recycling strategy aimed at scaling up its infrastructure investment trust portfolio. According to the latest regulatory filing submitted to the National Stock Exchange of India (NSE), the assets being transferred include Solapur Yedeshi Tollway Limited and CG Tollway Limited, collectively referred to as Project SPVs. The binding term sheet for this transfer was approved by the Board of Directors of both the IRB Infrastructure Trust and the IRB InvIT Fund during their respective board meetings held on July 2, 2026. This definitive agreement follows the non-binding offer exchanged on May 14, 2026.
The transaction is expected to unlock equity value of ₹2,744 crore, which will be redeployed to fund upcoming opportunities in the sector, estimated to be around ₹8,000 crore, as reported in the latest regulatory filing. The transfer will increase IRB's operations and maintenance (O&M) order book by approximately ₹2,400 crore, following the transfer to the IRB InvIT Fund. Following the transfer, IRB will be the project manager of the two BOT projects after their transfer to the IRB InvIT Fund, forming part of the company's broader capital recycling strategy to monetize mature assets and reinvest the proceeds into new opportunities.
Virendra D. Mhaiskar, Chairman and Managing Director of IRB Infrastructure Developers, emphasized that the signing of this binding term sheet represents another successful iteration of IRB's B.E.S.T. (Bid, Execute, Stabilise, Transfer) strategy, underscoring the strength of their capital recycling model. As reported in the regulatory filing, Mhaiskar stated that by periodically monetising mature assets and redeploying the released capital through the private InvIT into new opportunities, the company is creating a self-sustaining growth platform that compounds shareholder value without incremental equity infusion at the sponsor level.
The deal is part of IRB's strategy to reach an asset base of ₹1,40,000 crore by FY29, utilising the proceeds from asset sales to reinvest in new opportunities. According to the regulatory filing, the transaction strengthens both InvITs by enhancing the public InvIT's portfolio with seasoned, high-quality, revenue-generating assets and a longer weighted average concession life, while replenishing the private InvIT's capital for future acquisitions and development. Mhaiskar added that this scalable model cements IRB's transition into a premier sponsor and O&M platform, accelerating progress towards building an asset base of ₹1.4 trillion over the next three to four years.
