IRB Infrastructure Transfers Gandeva–Ena Highway Asset to InvIT Platform in ₹513 Crore Strategic Deal

IRB Infrastructure has reportedly completed the transfer of its 27.5-kilometre Gandeva–Ena Hybrid Annuity Model (HAM) project to its publicly listed infrastructure investment trust, IRB InvIT Fund, for a total consideration of approximately ₹513 crore, according to industry sources.

Transaction Structure and Operational Continuity

According to reports, the deal structure ensures that IRB Infrastructure will receive the full equity value of the highway project, while the associated debt will simultaneously be transferred to the InvIT. Industry observers have noted that despite the ownership transfer, IRB Infrastructure is expected to retain its role as the operations and maintenance manager for the corridor, ensuring continuity in project management and service delivery.

This approach is similar to Suzlon's sale-leaseback arrangement that allowed the company to unlock capital while maintaining operational presence.

Strategic Importance of the Gandeva–Ena Corridor

The Gandeva–Ena highway corridor is reportedly a critical component of the Delhi–Mumbai Greenfield Expressway under NHAI's Package VII. Sources have confirmed that the project has already commenced revenue generation through annuity payments from the national highway authority. As infrastructure continues to boost growth across major corridors, such strategic highway assets have become increasingly valuable for institutional investors.

The Delhi-Mumbai corridor development aligns with India's broader expressway expansion plans, including initiatives such as the new expressway adjacent to Mumbai-Pune Expressway and elevated corridors linking MTHL with major expressways.

Asset Monetization Strategy for Balance Sheet Optimization

Industry analysts have indicated that this transaction forms part of IRB Infrastructure's broader asset monetization strategy aimed at strengthening its financial position. By transferring the project to its InvIT platform, the company reportedly seeks to optimize its capital structure and reduce its consolidated net debt-to-equity ratio. This strategic move mirrors similar initiatives by other infrastructure players, such as Mumbai Metro's strategic land monetization plan across prime locations.

The approach is comparable to strategies adopted by real estate majors like Prestige Estates planning debt reduction through QIP funds to fuel aggressive expansion while maintaining healthy balance sheets.

Enabling Future Highway Development Opportunities

According to market observers, the capital freed up through this transaction is expected to provide IRB Infrastructure with greater financial flexibility to pursue upcoming highway development opportunities across the country. The InvIT platform has emerged as an effective vehicle for infrastructure companies to recycle capital while retaining operational involvement in mature assets.

With institutional interest in Indian infrastructure growing, as evidenced by Embassy REIT's potential acquisition deals and real estate debt funds launching across major cities, the InvIT route continues to attract significant investor attention.

The transaction also underscores the growing maturity of India's infrastructure investment ecosystem, where multiple cities are emerging as investment hotspots driven by enhanced connectivity and expressway networks.

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