IRB Infrastructure Developers Ltd. has approved the sale of its VM7 Expressway Private Limited to the IRB InvIT Fund for a consideration of ₹513 crore. This move will reduce debt and improve the company’s consolidated financial position. The transaction involves the transfer of the Gandeva Ena (VM7) HAM project, a part of the Delhi Mumbai Greenfield Expressway. IRB will also manage the project post-transfer.
VM7 Expressway Divestment
The Board of Directors at IRB Infrastructure Developers Ltd. has approved the sale of its wholly-owned subsidiary, VM7 Expressway Private Limited, to the IRB InvIT Fund. The decision, made on December 1, 2025, includes the transfer of the Gandeva Ena (VM7) HAM project.
Financial Impact
The sale will generate approximately ₹5,130 million in aggregate purchase consideration. This will be paid by the Trust in cash and in one or more tranches. This sum will be used for the sale and transfer of 100% equity shares of VM7, prepayment of senior debt, and repayment of subordinate debt and unsecured loans related to VM7. The company expects the deal to be completed by February 28, 2026.
Project Management
IRB Infrastructure Developers will act as the project manager for the VM7 project post-acquisition. The operation period is expected to last approximately 15 years, with a fixed consideration of up to ₹2,445.7 million (inclusive of applicable taxes).
Strategic Rationale
According to Mr. Virendra D. Mhaiskar, Chairman & Managing Director, this transfer bolsters the company’s strategy, ensuring long-term cash flow stability and enhancing payouts for the IRB InvIT Fund, while improving IRB Infra’s capability to pursue future growth opportunities.
Source: BSE
