IRB proposes VM7 expressway transfer to InvIT fund

IRB Infrastructure Developers Ltd. (IRB) announced its board has approved a preliminary non-binding invitation to offer the VM7 Expressway Project to the IRB InvIT Fund. This strategic move aligns with IRB’s B.E.S.T. Strategy (Bid, Execute, Stabilize, and Transfer) to unlock capital and drive growth, aiming to double its portfolio without fresh fund infusion. The InvIT Fund, a publicly offered and listed Infrastructure Investment Trust sponsored by IRB, is well-positioned to fund the acquisition.

The VM7 Project, a wholly-owned subsidiary of IRB, involves the construction, operation, and maintenance of an eight-lane access-controlled expressway in Gujarat, under a Hybrid Annuity Mode. It recently received a provisional completion certificate on August 25, 2025, from NHAI, making it a revenue-generating operational asset.

The project, part of the upcoming Delhi Mumbai Greenfield Expressway, has an appraised cost of INR 17,020 million and a concession period of 17 years. The transfer is expected to provide long-term cashflow visibility for the InvIT and enhance payouts for its unitholders.