IRB Infrastructure Developers to Execute Ganga Expressway via Private InvIT

IRB Infrastructure Developers Limited announced updates on its Ganga Expressway Project, which will be executed through its associate, the Private InvIT (IRB Infrastructure Trust).

The expressway spans a design length of 129.7 km, connecting Bijoli (Meerut) to Nagla Barah (Budaun) in Uttar Pradesh. The project, valued at over ₹20,890 million, has been managed by Meerut Budaun Expressway Limited (MBEL), a 51:49 joint venture between IRB Infrastructure and a GIC affiliate. MBEL contributed 25.47% of IRB’s consolidated income and 4.46% of its net worth in FY 2023-24.

IRB’s Board approved transferring 41% equity shares and debentures in MBEL to the Private InvIT for ₹874.61 crore. This move is part of a broader strategy to implement the remaining project under the Private InvIT framework, supported by revised agreements with GIC affiliates, Cintra entities, and MBEL. The sale and transfer are expected to conclude by December 31, 2024.

Financial Implications and Project Management

Under the project implementation agreement, IRB Infrastructure is set to receive approximately ₹6,422 crore (plus taxes) for managing the remaining project phases. This reflects the company’s dual role as a project sponsor and manager, leveraging its 51% unit ownership in the Private InvIT. The Private InvIT, registered under SEBI’s infrastructure trust framework, will oversee the continuation of the six-lane access-controlled expressway, which is expandable to eight lanes.

This strategic move allows IRB to monetise assets while ensuring streamlined execution, reinforcing its leadership in infrastructure development.

On December 16, 2024, IRB Infrastructure Developers share price opened at ₹59.14, touching the day’s low at ₹58.75, as of 9:50 AM on the NSE.

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