IRB InvIT buys two toll SPVs for ₹2,744 cr, plans ₹3,000 cr raise
The binding acquisition from sponsor's trust covers concessions till 2042 and 2046 with combined revenue of ₹306.6 cr. A ₹3,000 cr fundraise introduces dilution risk.
— 1 earlier story on IRB InvIT Fund →What's new
- Binding term sheet to acquire Solapur Yedeshi Tollway and CG Tollway from IRB Infrastructure Trust.
- Enterprise value of ₹4,605 cr; target SPVs have concession periods ending 2042 and 2046.
- Trust plans to raise up to ₹3,000 cr via institutional placement, rights issue, or debt.
Why this matters
The acquisition equity value likely exceeds 50% of IRB InvIT's market cap, making it a material, price-sensitive event. The simultaneous ₹3,000 cr equity raise dilutes existing unitholders, while the ₹2,663 cr O&M contract locks in sponsor revenue.
What we're watching
- Unitholder and regulatory approvals required; closing target by Sep 30, 2026.
- Pricing of the fundraise and its impact on unit value.
- Integration of the two SPVs and revenue contribution.
The full read
IRB InvIT has taken a binding step toward its largest acquisition yet. The trust signed a binding term sheet to buy two toll-road SPVs, Solapur Yedeshi Tollway and CG Tollway, from sponsor IRB Infrastructure Trust for an equity consideration of ₹2,744 crore (enterprise value ₹4,605 crore). The targets hold concessions running to 2042 and 2046, generating combined annual revenue of ₹306.6 crore in FY2026. To fund the purchase, IRB InvIT approved raising up to ₹3,000 crore through equity or debt, and also awarded an 18-year, ₹2,663-crore O&M contract to the sponsor. The deal is material, likely exceeding half the trust's market cap, and the equity raise adds dilution risk. Closing is targeted by September 2026, pending unitholder and regulatory nods.
Questions answered
- What assets is IRB InvIT acquiring?
- IRB InvIT is acquiring two special purpose vehicles, Solapur Yedeshi Tollway Limited and CG Tollway Limited, from IRB Infrastructure Trust. These operate toll road concessions expiring in 2042 and 2046.
- How much is IRB InvIT paying and how will it fund the deal?
- The equity consideration is ₹2,744 crore with an enterprise value of ₹4,605 crore. To fund the purchase, the trust plans to raise up to ₹3,000 crore through a mix of institutional placement, rights issue, or debt.
- What is the significance of the O&M contract approved alongside the acquisition?
- The trust approved an 18-year operations and maintenance contract with sponsor IRB Infra worth ₹2,663 crore. This ties the sponsor to long-term revenue and aligns interests.
- Why is this deal considered highly price-sensitive?
- The acquisition equity value likely exceeds 50% of IRB InvIT's market capitalisation, triggering materiality rules. The planned equity raise also introduces dilution risk for existing unitholders.
- When is the deal expected to close?
- The acquisition is expected to close by September 30, 2026, with a long-stop date of December 31, 2026, subject to unitholder and regulatory approvals.
Story so far
All notes on IRBINVIT →- 2 Jul 2026 · 3:10 PM IST IRB InvIT buys two toll SPVs for ₹2,744 cr, plans ₹3,000 cr raise
- today IRB InvIT files ballot for ₹1,136 cr O&M extension, asset buy, fundraise