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IRB Infrastructure said earlier this week that its board had cleared the divestment of the Gandeva Ena (VM7) hybrid annuity model project to the IRB InvIT Fund for INR 513 crore. The company stated that it would receive the entire equity consideration after the transfer is completed, along with the movement of project debt to the InvIT. The deal, linked to the upcoming Delhi-Mumbai Greenfield Expressway, is expected to lower IRB's consolidated net debt-to-equity ratio. IRB has also agreed to continue as the project manager after the asset moves to the Public InvIT platform.
IRB Infrastructure said earlier this week that its board had approved the sale of the Gandeva Ena (VM7) hybrid annuity model project, a component of the upcoming Delhi-Mumbai Greenfield Expressway, to the IRB InvIT Fund for INR 513 crore. Advertisement
The company mentioned in its statement that it would receive INR 513 crore as full equity consideration once the transfer is completed. It also noted that the project debt associated with the VM7 asset would shift to the InvIT as part of the transaction. IRB added that its consolidated net debt-to-equity ratio would record a notable improvement following the divestment.
In its communication, the company further conveyed that it had agreed to continue overseeing the VM7 Project as its project manager after the transfer to the Public InvIT.
The Gandeva Ena HAM Project involves the eight-laning of a revenue-generating stretch in Gujarat under NHAI's Package-VII of the Bharatmala Pariyojana. The asset is currently being implemented by VM7 Expressway Private Limited, IRB's wholly owned subsidiary, under a concession granted by the National Highways Authority of India. IRB has previously divested multiple operational assets to its InvIT in line with its strategy to recycle capital and focus on newer highway development packages.
IRB's decision to transfer the Gandeva Ena asset to its InvIT reinforces the company's ongoing capital recycling strategy, which has been central to its portfolio planning in recent years. By continuing as the project manager, the company retains operational oversight while freeing up balance-sheet capacity for newer highway projects under the Bharatmala programme. The move reflects the broader trend of infrastructure developers moving mature assets to InvIT platforms to optimise cash flows, strengthen leverage indicators, and pursue long-term growth opportunities alongside the national expressway expansion pipeline.
Source - PTI
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