IRB Infrastructure Developers Ltd plans to offer its Vadodara Mumbai Expressway Project (VM7) to the IRB InvIT Fund. The project, which has recently received provisional completion certification, is a revenue-generating asset. The proposed transfer is part of IRB’s strategy to unlock capital and drive future growth and is structured as a win-win for both IRB Infra and the IRB InvIT Fund.
VM7 Expressway Project
IRB Infrastructure Developers Ltd. has announced plans to offer the Gandeva Ena HAM project, part of the upcoming Delhi Mumbai Greenfield Expressway, to the IRB InvIT Fund. This decision was approved by the Company Board.
Key Project Details
The project involves a stretch of 27.5 Kms (220 Lane Kms) and has an appraised cost of Rs.1,702 Crores. It has recently received a Provisional COD (Completion Date) and is currently revenue-generating. This project is an eight-lane expressway in Gujarat, developed under NHAI’s Bharatmala Pariyojana.
Strategic Rationale
According to Mr. Virendra D. Mhaiskar, Chairman & Managing Director, this move aligns with IRB’s ‘Bid–Execute-Stabilize–Transfer‘ strategy. By offering a HAM asset to the Public InvIT, it aims to provide long-term cash flow visibility and release funds for future growth. The goal is to complete the transaction within the current calendar year, benefiting stakeholders of both IRB Infra and IRB InvIT Fund.
Project Benefits
The VM7 Expressway Private Limited, a wholly-owned subsidiary of IRB, has been executing this project under a concession awarded by the National Highways Authority of India (NHAI). The project provides a stable revenue stream and contributes to the strategic growth objectives of IRB Infrastructure Developers.
Source: BSE
