IRB Public InvIT Overview : Over 85 per cent of India's passenger traffic and about 65 per cent of its freight are transported on roads

  • IRB InvIT Fund: Acquire three Revenue Generating Highway Assets
  • Toll Revenue for Q1FY26 is Rs.278Crs, against Toll Revenue of Rs.259Crs in Q1FY25; thus approx. 8% rise over last year 
  • The Trust’s Cumulative Distribution, since its launch and listing in the FY2018, has reached Rs. 4,432Crs, i.e., approx. 75% of the aggregate fund raised.   
  • The Trust is set to acquire three Revenue Generating Highway Assets, Viz. Kaithal Rajasthan BOT Project (Haryana), Hapur Moradabad BOT Project (Uttar Pradesh) and Kishangarh Gulabpura BOT Project (Rajasthan) from IRB Infrastructure Trust with an Enterprise Value of Rs.8,436Crs for an equity consideration of Rs.4,905Crs.  
  • The acquisition would result in expansion of Trust’s footprints to two more Indian States; enhancement of Assets Value to more than Rs.16,000Crs; portfolio size to 9 projects and Weighted Average Concession Life from 14 years to 17 years  
  • While commenting on the occasion, the Spokesperson, for the IRB Infrastructure Private Limited, an Investment Manager of the IRB InvIT Fund said, “The first quarter was a vibrant one, marked by a robust year-on-year toll revenue growth of approximately 8%, despite a relatively soft June due to the early onset of the monsoon. The quarter also witnessed continued progress in the acquisition of three revenue-generating assets worth ₹8,400Crs from the IRB Infrastructure Trust, which are expected to soon become part of the IRB InvIT Fund’s project portfolio.”   

 

IRB Public InvIT Overview


  • IRB InvIT Fund Gross Toll Revenue Toll Collection increase ~ 13% on Y-o-Y basis  
  • According to a report,  Over 85 per cent of India's passenger traffic and about 65 per cent of its freight are transported on roads  , this gives us an idea of its importance
  • Listed in May-2017 with initial portfolio of six operational assets; seventh asset was transferred in Sep-2017 
  • Two assets were successfully completed and handed back to the authority. One HAM asset acquired in Oct-2022  
  •  IRB InvIT has recently acquired VK1 HAM Asset from IRB Infra for an enterprise value of INR 12.97 bn including INR 3.42 bn as Equity payment  
  •   BOT-Toll assets with proven traffic history and spread across different states incl. Maharashtra, Rajasthan, Karnataka, Punjab & Tamil Nadu 
  • Presence across key highway stretches in India; four assets part of Golden Quadrilateral corridor with one asset on the East-West corridor 
  • Remaining concession life of ~16 years  
  •   For new acquisitions, the endeavor shall be to maximize payout to the unitholders without impacting the current yield.  
  • IRB InvIT: 8.00 per unit  
  • Cumulative Distribution since IPO crosses 65% to Rs.3,852 Crs
  • FY24 Toll Revenue growth is 10% Y-o-Y • Maiden distribution of dividend for FY24 is Rs.0.60 per unit •
  •  Electronic Toll Collection is now ~ 96%   
  • The Trust, set up to own, operate and maintain portfolio of highway concessions, is managing 6 operational highway assets at present, which include five BOT assets and one HAM asset, with an aggregate value (net assets) of Rs. 8,000 Crores spread across the states of Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu, and Punjab. 
  • IRB InvIT to distribute Rs. 116 Crs at Rs. 2.00 per unit for Q4FY23 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.” He further added, “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.   
  •   Thank you for contacting Rounaq! Please let us know how we can help you. 
    Whatsapp: 7838491131

    SEBI registered RA : Rounaq Bakshi
    Waheguru

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