### **Overview** IRB InvIT Fund is India’s first Infrastructure Investment Trust (InvIT), sponsored and managed by **IRB Infrastructure Developers Limited**, one of the country’s largest private integrated transport infrastructure developers. Registered under SEBI’s Infrastructure Investment Trusts Regulations, 2014, the fund is structured to democratize ownership of high-quality, revenue-generating road assets while delivering consistent and stable returns to unitholders. The fund primarily invests in operational highway assets across India, focusing exclusively on the **road sector** under **Ind AS 108**, with no geographic segment diversification required due to its India-only operations. --- ### **Portfolio & Asset Base (as of Nov 2025)** - **Total Operational Assets**: 9 revenue-generating highway projects - **8 Build-Operate-Transfer (BOT)** projects - **1 Hybrid Annuity Model (HAM)** project - **Total Lane Kilometers**: Over **4,200 operational lane kilometers** - **Enterprise Value Post-Acquisition**: Exceeds **₹16,000 crore** - **Weighted Average Concession Life**: Extended to **17 years** (from 14 years), enhancing long-term revenue visibility - **Geographic Presence**: Operations span **eight Indian states**, including Maharashtra, Rajasthan, Gujarat, Karnataka, Tamil Nadu, Punjab, Uttar Pradesh, and Haryana --- ### **Recent Strategic Expansion (Jun–Jul 2025)** In a major portfolio expansion: - IRB InvIT Fund entered into a **binding term sheet** to acquire **three stabilized BOT highway assets** from **IRB Infrastructure Trust**, an associate of its sponsor. - **Acquired Assets**: 1. **Hapur–Moradabad** (99.87 km, Uttar Pradesh) 2. **Kaithal–Rajasthan Border** (166.26 km, Haryana) 3. **Kishangarh–Gulabpura** (90 km, Rajasthan) - **Transaction Value**: - Equity Consideration: **₹4,905 crore** - Enterprise Value: **₹8,436 crore** - **Impact of Acquisition**: - Expands portfolio from **6 to 9 assets** - Doubles enterprise value from **₹7,850 crore to ₹16,300 crore** - Adds **Uttar Pradesh and Haryana** to geographic footprint, improving diversification - Increases total lane kilometers to ~1,800 km from acquired assets alone - Expected to be **accretive to Distribution per Unit (DPU)** over time The acquisition is subject to unit holder and regulatory approvals and is expected to close in **H1 FY26**. A long-term **Project Implementation Agreement (PIA)** with the sponsor is planned for the acquired assets, which have a **weighted average life of 20 years**. --- ### **Revenue Model & Cash Flows (HAM Project – VM7 Expressway Pvt Ltd)** IRB InvIT holds a stake in **VM7 Expressway Private Limited**, which developed an **8-lane greenfield expressway** (220 lane km) from **Gandeva to Ena, Gujarat**, as part of the **Vadodara-Mumbai corridor** under the **Hybrid Annuity Model (HAM)**. - **Appraised Project Cost**: ₹17,020 million - **Concession Term**: 17 years (2 years construction + 15 years operation) - **Commercial Agreement Date**: September 15, 2020 - **Provisional Completion of Development (PCOD)**: Achieved in **May 2025** **HAM Revenue Components**: 1. **Annuity Payments**: - Incremental payments rising from **₹272 million (Year 1)** to **₹319.55 million (Year 6)** 2. **Interest on Annuity**: - Peaks at **₹660.93 million in Year 3**, then declines 3. **O&M Payments**: - Stable at **₹14.71–16.27 million annually**, adjusted for inflation This **predictable, annuity-based income**, backed by **NHAI**, ensures **stable cash flows** and supports the fund’s **'AAA' credit rating** and low net debt-to-asset value ratio of **0.3:1**. --- ### **Additional HAM Asset: Vadodara-Kim Expressway (VK1)** - Acquired in 2022; 23.74 km segment of **Delhi-Mumbai Greenfield Expressway** - Operates under a **15-year concession** - Generates semi-annual annuity and O&M payments from NHAI - Inflation-adjusted and interest-bearing balances ensure resilient returns - Strengthened the fund's **revenue diversification** and **yield stability** --- ### **Financial & Operational Highlights** - **Toll Revenue – Q1 FY26**: ₹278 crores (8% YoY growth from ₹259 crores in Q1 FY25) - **Credit Rating**: ‘**AAA**’ (stable outlook), reflecting strong financial discipline and low leverage - **Debt Profile**: Low-cost debt and conservative capital structure support sustainable distributions - **Distributions**: Demonstrated consistent track record – total distributions of **₹2,397 crores (₹41.30/unit)** in under four years (as of Jul 2021) --- ### **Sponsor Strength: IRB Infrastructure Developers Ltd** - **Market Leadership**: Largest private road developer in India with ~**₹80,000 crore asset base** - **National Contribution**: - ~**14% of Golden Quadrilateral** - ~**12% of North-South Corridor** - **Project Portfolio**: - 26 road projects across public and private InvITs: **18 BOT, 4 TOT, 4 HAM** - **TOT Market Share**: ~**33%**, including ownership of **Mumbai-Pune Expressway** - **Construction Capacity**: Over 500 km of road per year - **Total Lane-Kms Constructed**: ~19,000 km (15,500 km currently operational) IRB acts as **Investment Manager** and **Project Manager**, providing deep sector expertise, operational excellence, and access to **Right of First Refusal (ROFR)** on sponsor assets. --- ### **Investment Thesis & Strategy** - **Core Focus**: Acquiring **yield-accretive, operational road assets** with **stable cash flows** - **Growth Strategy**: - Leverage ROFR and secondary market opportunities - Target **perpetual InvIT** model via regular portfolio infusions - Enhance portfolio **quality, diversity, longevity, and risk profile** - **Value Drivers**: - **Extended concession life** - **Geographic diversification** - **Balanced mix of BOT (toll-based) and HAM (annuity-based) revenue** - **Operational efficiency and cost optimization** ---