Values property at Rs 22,500 crore; IRB to transfer nine BOT assets into InvIT.
MUMBAI: In perhaps the biggest Indian road sector deal, Government of Singapore Investment Corp (GIC) on Tuesday said it would invest Rs 4,400 crore in IRB Infrastructure’s under-construction road assets platform, valuing the property at Rs 22,500 crore.
IRB will transfer nine BOT assets into a private infrastructure investment trust in which it holds 51%. The portfolio spans 1,200 km in Haryana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, and Karnataka. IRB shares surged 10% on Tuesday, against Sensex’s 0.75% gains.
The transaction comes at a time when Indian infrastructure companies are struggling to raise finances, in the aftermath of IL&FS defaults.
“This will help us deleverage our balance sheet. This is a long-term partnership with GIC and we will together bid for future road projects that are coming up for bidding,” Virendra Mhaiskar, chairman and managing director of IRB, told ET. “This investment symbolises the confidence shown by a global institutional investor in IRB’s ability to build quality infrastructure for India. Most of the transactions in the road sector were always buyouts or controlling deals. However, GIC preferred to partner with IRB. The proceeds will also be used for equity funding in future projects,” Mhaiskar said.
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