IRB InvIT Fund set to acquire Vadodara Kim 8 Lane Greenfield Expressway HAM Project in the State of Gujarat, which is DPU (Distribution Per Unit) accretive from the year 1

Unitholders favoured the Resolution with substantial majority of 99.99%; give nod to acquire the Asset from Sponsor Company   

  • Acquisition, subject to necessary compliances and approvals, expected to be completed by October 2022 end 
  • Project is part of upcoming Delhi Mumbai 8 Lane Greenfield Expressway 
  • Trust to acquire Asset at an Enterprise Value of Rs. 1,297 Crores  
  • IRB InvIT Fund is India’s first listed Infrastructure Investment Trust 

Mumbai, 9th September 2022: With this, the IRB InvIT Fund, India’s first listed Infrastructure Investment Trust (InvIT) is now set to acquire Vadodara Kim Expressway HAM project in the State of Gujarat from its Sponsors IRB Infrastructure Developers Limited at an enterprise value of Rs.1,297 Crores and equity value of Rs.342 Crores.

The Unitholders of the InvIT, including Institutional Investors, have given their nod to acquire the Asset with a substantial majority of 99.99% in a virtual Extraordinary General Meeting held today. Out of the 25,37,38,305 units polled, 25,37,00,492 units voted in favour of the resolution while 37,813 units voted against the resolution; summary of the same is as follows.

Total number of Units Units Held by Sponsor and their associates/related party Other Public Unitholders (Eligible unitholders) No. of votes polled* % of Votes Polled on eligible units No. of Votes – in favour No. of Votes – against % of Votes in favour on votes polled % of Votes against on votes polled
58,05,00,000 10,76,90,000 47,28,10,000 25,35,03,305 53.62% 25,34,65,492 37,813 99.99% 0.01%

* Votes casted by related party to the transaction (as well as associate of such related party) is not considered in the above results for the said resolution

While commenting on the development, the Spokesperson of the Investment Manager of IRB InvIT Fund said, “The approval of Resolution by our Esteemed Unitholders with such huge majority will now enable us to move ahead for acquiring the Asset, subject to the regulatory approvals and timelines. Once again, our Stakeholders have reposed their trust and confidence in the InvIT and its Management. With a humble gesture, we express our sincere gratitude towards all our stakeholders for extending wholehearted support to us.” He further added, “The acquisition is in line with our Investment strategy to explore opportunities from time to time to add lucrative Assets to the portfolio and enhance Stakeholders value through the same in consistent manners.”

To re-iterate, Vadodara – Kim HAM project developed and recently commissioned by the Company is 23.740 Kms stretch on the upcoming Delhi Mumbai 8 Lane Greenfield Expressway with the Concession Period of 15 years. The project, being a Hybrid Annuity (HAM) project, has a stable and firm visibility in cash flows with the distinct features, like semi-annual annuity payments receivable from NHAI spread across 15 years; interest on balance annuities payable by NHAI at bank rate plus 3% per annum; semi-annual O&M receivable from NHAI adjusted for inflation; etc.

The acquisition is expected to be completed by the end of October 2022, subject to necessary compliances and approvals. After the acquisition is completed, the InvIT will have six operational and revenue generating Assets in its portfolio.

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