Home / Business and Economy / IRB Infra Completes ₹513 Crore Project Sale
IRB Infra Completes ₹513 Crore Project Sale
2 Feb
Summary
- IRB completed the transfer of Gandeva Ena project for ₹513 crore.
- This move reduces IRB's debt by approximately ₹700 crore.
- The project is an eight-laning stretch on the New Delhi-Mumbai Expressway.
IRB Infrastructure Developers Ltd. announced on Monday the completion of its Gandeva Ena (VM7) hybrid annuity model project transfer to the IRB InvIT Fund. The company received ₹513 crore in cash for its equity stake in the project's special purpose vehicle. This transaction is set to reduce IRB's consolidated debt by approximately ₹700 crore, bolstering its financial flexibility.
Chairman and Managing Director Virendra D. Mhaiskar highlighted that this deal exemplifies IRB's 'Bid-Execute-Stabilise-Transfer' strategy, demonstrating its capability to recycle capital and extract value from established infrastructure assets. The received proceeds will support IRB's pursuit of new infrastructure ventures.
The Gandeva Ena HAM project involves the eight-laning of a revenue-generating section on the forthcoming New Delhi-Mumbai Greenfield Expressway in Gujarat. It is part of Package VII of the Bharatmala Pariyojana, with its concession granted by the National Highways Authority of India.
Financially, IRB Infra reported a 2.9% year-on-year revenue increase to ₹2,025.4 crore for the quarter ending December 31, 2024. EBITDA saw a 13.2% rise to ₹984.1 crore, with improved EBITDA margins.
