IRB Executes Binding Term Sheet for Two BOT Highway Assets; Expands Sponsor Role Across 12 Projects

<h1>IRB Executes Binding Term Sheet for Two BOT Highway Assets; Expands Sponsor Role Across 12 Projects</h1>

IRB Infrastructure Developers Limited, a leader in India's roads and highways sector, has announced a significant milestone in its capital recycling strategy. The Company’s sponsored platforms, IRB Infrastructure Trust (the Private InvIT) and the IRB InvIT Fund (the Public InvIT), have signed a Binding Term Sheet for the transfer of two premium Build-Operate-Transfer (BOT) highway assets from the Trust to the Public InvIT.

The definitive agreement was reached on July 2, 2026. The sale involves Solapur Yedeshi Tollway Limited (SYTL) and CG Tollway Limited (CGTL), which are both owned by IRB Infrastructure Trust.

Key financial details of the transaction include:

• Aggregate Equity Value: INR 2,744 crore.
• Aggregate Enterprise Value: INR 4,605 crore. This enterprise value is calculated after accounting for external gross debt, which stood at INR 591 crore (for SYTL) and INR 1,270 crore (for CGTL).

The sale proceeds of INR 2,744 crore will be re-deployed by the Public InvIT toward asset addition, targeting approximately INR 8,000 crore. Furthermore, the transfer strengthens both InvITs, as it enhances the Public InvIT's portfolio with seasoned, high-quality assets and replenishes the Private InvIT’s capital for future acquisitions.

Commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director of the Company, stated that the binding term sheet demonstrates the strength of IRB's B.E.S.T. (Bid, Execute, Stabilize, Transfer) strategy. He noted that by periodically monetizing mature assets and redeploying capital through the Private InvIT into new opportunities, the group is creating a self-sustaining growth platform. This model aims to help IRB accelerate its progress towards building an asset base of ₹1,40,000 crore over the next three to four years.

The two projects slated for transfer are detailed below:

Expansion of Sponsor Role for Trust Assets​

In parallel to the asset transfer, IRB Infrastructure Developers Limited has secured an agreement involving the extension of Project Implementation Agreements (PIAs). This arrangement involves IRB as the Sponsor and Project Manager providing operation and maintenance services across twelve additional project SPVs belonging to the IRB Infrastructure Trust.

The contracts relate to 12 Special Purpose Vehicles (SPVs), including AE Tollway Limited, CG Tollway Limited, Solapur Yedeshi Tollway Limited, and others. These agreements are set to be executed in connection with projects that continue until their original concession period ends. The approximate aggregate value of these extended operational commitments stands up to INR 22,940.25 crore, including prevailing GST at 18%.

This dual move—transferring assets while simultaneously extending the sponsorship for other key Trust projects—underscores IRB's commitment to its scalable business model and continued role as a premier Sponsor and O&M platform in the infrastructure sector.

IRB Stock Price Movement​

IRB Infrastructure Developers Limited shares climbed by 0.7% in post-market trading today, settling at ₹21.45. The stock saw a significant level of activity, with total traded volume reaching 11.65 million shares.