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IRB InvIT Fund has scheduled an Extraordinary General Meeting next month to seek unitholder approval for acquiring VM7 Expressway Private Limited at an enterprise value of INR 1,217 crore and an equity value of INR 513 crore. The asset covers a 27.5-km eight-lane stretch on the Vadodara-Mumbai Expressway developed under the Hybrid Annuity Model. The proposal also includes extending secured debt and shareholder loans to replace existing borrowings. A long-term project management agreement worth about INR 244.57 crore over nearly 15 years will also be considered.
IRB InvIT Fund has planned an Extraordinary General Meeting (EGM) for next month to seek unitholder approval for the proposed acquisition of VM7 Expressway Private Limited. The transaction places the project's equity value at INR 513 crore and its enterprise value at INR 1,217 crore. VM7 is currently owned by IRB Infrastructure Developers and operates a 27.5-km, eight-lane stretch of the Vadodara-Mumbai Expressway built under the Hybrid Annuity Model. Advertisement
The Trust has proposed offering secured debt and shareholder loans to the special-purpose vehicle to help it repay the existing senior loans and the subordinate debt infused earlier by IRB Infrastructure. This financial restructuring is part of the broader process of transferring full ownership of the project to the public InvIT.
Along with the acquisition proposal, the EGM will also consider appointing IRB Infrastructure Developers as the long-term project manager for VM7. The Project Implementation Agreement is expected to be valued at close to INR 244.57 crore over a period of around 15 years and will include fixed-price operations and maintenance services for the highway.
Earlier this month, IRB Infrastructure had cleared the sale of its Gandeva Ena (VM7) HAM project to the InvIT for INR 513 crore. This move is aimed at improving the company's consolidated net debt-to-equity position while transferring complete project ownership, including the associated debt, to IRB InvIT Fund. IRB will continue as the project manager after the transfer, ensuring continuity in operations.
The VM7 stretch is part of a key section of the Vadodara-Mumbai Expressway, connecting major movement corridors and supporting steady highway traffic. The project has been developed under the government's larger expressway expansion programme, which has encouraged the participation of InvITs in operating and maintaining national highway assets.
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