Update on Acquisition of assets from IRB Infrastructure Trust (“Private InvIT”)

Update on Acquisition of assets from IRB Infrastructure Trust (“Private InvIT”)



 https://www.youtube.com/watch?v=mkXES0z_Q7c

When the Stock came up with the IPO it was priced at 100-105 and was paying 10-12 dividend per year. During this time i was observing this stock and was happy to see the dividend yield as 10-12% that it offered.

Now comes the good part, the Covid happened and no highway roads were operational !! so no revenue for IRB. The stock was trading at 70-75 levels before Covid happened and it went to 25-28 levels in matter of days !!!

I started digging more and found out the pandemic clause applicable on road assets and noticed that the NHAI will pay help road operators in case a pandemic kind of situation happens. 

This very important clause changed my mindset and i went all in in this company at 28 odd levels where the dividend yield was in excess of 25% per ANNUM !!!!

From that day onwards, i realised money can be made in stock in exceptional manner but it requires strong screening process which needs to be backtested multiple times

Below are some notes, that are available which on a regular basis i notice to see if my portfolio is going fine 

  • IRB InvIT Aggregate distribution for FY23 is Rs. 467 Crs at Rs. 8.05 per unit 
  • Cumulative Distribution since IPO crosses 57% to Rs. 3,387 Crs 
  • Good recovery in revenue over FY22 despite completion of 2 Concessions 
  • First HAM project added to the Portfolio 
  • FY23 Toll Revenue rises 26% Y-o-Y 
  • Electronic Toll Collection is now ~ 95%
  • The InvIT has well managed to continue with this distribution, despite certain odds like handing over two concessions due to completion. 26% rise in toll collection across all assets despite these odds, along with FASTag toll collection around 95% is noteworthy
  • Adding a HAM Asset, the first one for the Trust, which would ensure consistent periodic revenue inflow, is another feather in the crown
  • Trust will continue to explore opportunities to acquire assets.” 
  • To re-iterate, the Trust acquired its first Hybrid Annuity Asset, Vadodara Kim Project from the Sponsors, in October 2023, which is the first stretch to achieve COD on the prestigious Delhi Mumbai 8 Lanes Greenfield Expressway.   
Certain ancillary agreements have been / are proposed to be executed in this regard, including amendments to existing arrangements with respect to the Trust, in connection with the transfer of the Target SPVs. 
A. IRB Hapur Moradabad Tollway Limited was incorporated on April 18, 2018, for the implementation of the project of Six Laning of Hapur bypass to Moradabad Section including Hapur bypass from Km 50.000 (Design Chainage 50.000) to Km 148.277 (Design Chainage 149.867) of NH 24 (New NH- 9) in the State of Uttar Pradesh under NHDP Phase V (Bharatmala Pariyojna) on DBFOT (Toll) mode. 
B. Kaithal Tollway Limited was incorporated on June 11, 2014, for the implementation of the project of Four Laning of Kaithal to Rajasthan Border section of NH-152/65 from km 33+250 (Design Km- 0.500) to km 241+580 (Design Km 165.759) in the State of Haryana under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT) Toll basis. 
C. Kishangarh Gulabpura Tollway Limited was incorporated on January 12, 2017, for the implementation of the project of Six Laning of Kishangarh to Gulabpura Section of NH 79A and NH 79 in the state of Rajasthan (length 90.000 km) under NHDP Phase V package - I on DBFOT (Toll) mode.




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SEBI registered RA : Rounaq Bakshi
Waheguru

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