Affiliates of Singapore’s sovereign wealth fund GIC will invest up to `4,400 crore in road assets of IRB Infrastructure Development. Nine of IRB's build-operate-transfer (BOT) assets will be transferred to a private infrastructure investment trust (InVIT) in which it will hold a 51% controlling stake, the company said in a press release.
The net revenue of the portfolio in 2018-19 was around `630 crore and on completion of construction, the enterprise value of the portfolio is estimated at `22,500 crore, the release said.
The portfolio spans across around 1,200 km across Haryana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Karnataka. Three of the nine projects are operational and the remaining six are at various stages of construction. Five of the assets under construction are four-to-six laning projects, where tolling as well as construction has already begun.
"The deal was approved by the board today, following which IRB has signed binding definitive agreements with GIC for a total investment of up to `4,400 crore, including funding of future construction costs," the release said.
"IRB and GIC plan to also explore future road sector opportunities in India together through the private InvIT," Virendra Mhaiskar, chairman and managing director of IRB Infrastructure,said. The company on Tuesday reported a profit after tax of `206.62 crore for the June quarter, down 17.4% year-on-year.