IRB InvIT Fund to Acquire Tollway Assets SYTL and CGTL in Strategic Portfolio Expansion

IRB InvIT Fund to Acquire Tollway Assets SYTL and CGTL in Strategic Portfolio Expansion​

IRB InvIT Fund is set to acquire Solapur Yedeshi Tollway Limited (SYTL) and CG Tollway Limited (CGTL), two tollway SPVs, from IRB Infrastructure Trust. This acquisition forms part of the Trust’s strategy to expand its portfolio size, enhance revenue stability, and achieve geographical diversification within the infrastructure sector.

The Proposed Transaction involves IRB InvIT Fund acquiring 100% of the equity shares of both Target SPVs (SYTL and CGTL), which are currently held by Private InvIT. Beyond the acquisition of the Sale Shares, the Public InvIT has agreed to provide shareholder loans to each of the Target SPVs. The proceeds from these provided loans will be used by the companies to repay the subordinated debt and unsecured loans previously given by Private InvIT, with provisions also made for potential debt financing by Public InvIT to address portions of senior debt.

The acquisition is structured around a fixed purchase consideration, resulting in an aggregate enterprise value of INR 4,605 crore for both Target SPVs as of September 30, 2026. This valuation takes into account the existing external gross debt, which stands at INR 591 crores for SYTL and INR 1,270 crores for CGTL. The aggregate equity value of the two entities is set at INR 2,744 crore, with an agreed-upon possibility for this amount to increase if closing extends beyond September 30, 2026.

Key financial parameters related to the acquisition are detailed below:

Operational and Future Growth Plans​

In parallel with the acquisition, IRB Infrastructure Developers Limited, acting as the Sponsor, has been designated to serve as the Project Manager for both Target SPVs. This role involves undertaking Operation & Maintenance works for an aggregate value of approximately INR 2,663 crores over the remaining concession period for each project SPV.

Looking forward, the Trust has also approved measures to raise funds up to a total of INR 3,000 crore. This capital can be raised through various methods including institutional placement, further public offer, rights issue, or debt financing. The indicative timeline for completing the acquisition is set for on or before September 30, 2026, with a long stop date established for December 31, 2026.

The operational and background details of the acquired entities are as follows:

IRBINVIT Stock Price Movement​

As of 3:16 PM, shares of IRB InvIT Fund are edging higher to ₹60.55 today, rising by 0.1% in live trading. The stock is seeing significant movement, with over 2.87 million shares traded amidst the session.