IRB Infrastructure Developers Ltd. on Tuesday announced that it has received approval from the National Highways Authority of India (NHAI) to transfer its subsidiary Vadodara Kim Expressway Project to IRB InvIT Fund, a publicly offered and listed infrastructure investment trust (InvIT) fund sponsored by the company.
Having received the requisite approval, IRB Infra said it will now complete the transfer process and will also receive full consideration of Rs 342 crore.
The move will result in a consolidated debt reduction of Rs 955 crore.
Last month, IRB Infra announced that it had executed a share purchase agreement and other ancillary agreements for the transfer of the Vadodara-Kim Expressway Project to the IRB InvIT Fund.
The Vadodara-Kim stretch, which is part of the Delhi-Mumbai Expressway, is 23.74 km long and has a project cost outlay of Rs 2,094 crore.
In June this year, the company’s Chairman & Managing Director mentioned that the Vadodara-Kim expressway project offered meaningful cashflow visibility of over 15 years to the public InvIT. The transaction will free cash for IRB to fund its future project pipeline.