IRB InvIT Fund has signed an agreement to acquire 100% equity in Solapur Yedeshi Tollway and CG Tollway from IRB Infrastructure Trust for INR 2,744 crore. Including debt, the transaction values the assets at INR 4,605 crore. The acquisition aims to enhance portfolio stability and improve distribution per unit (DPU) for investors. Completion is expected by September 30, 2026, following receipt of all regulatory approvals.
IRB InvIT Fund Expands Portfolio with INR 4,605 Crore Tollway Acquisition
Equity Consideration: INR 2,744 crore | Aggregate Enterprise Value: INR 4,605 crore
Reader Takeaway: This expansion strengthens the asset base and supports long-term DPU growth while requiring successful integration of new road assets.
What just happened
IRB InvIT Fund has executed a Share Purchase Agreement (SPA) to acquire 100% equity stake in Solapur Yedeshi Tollway Limited (SYTL) and CG Tollway Limited (CGTL). The assets are being purchased from the Private InvIT, IRB Infrastructure Trust. The transaction involves an equity consideration of INR 2,744 crore and assumes existing external debt, bringing the total enterprise value to INR 4,605 crore. The deal received unitholder approval on August 3, 2026, and all necessary regulatory clearances are now in place.
Why this matters
This acquisition is a strategic move to scale the Trust’s infrastructure portfolio. Management expects the integration of these tollways to offer better geographic diversification and enhanced revenue stability. By increasing the weighted average life of the assets under management, the Trust aims to provide more predictable and improved cumulative distributions per unit (DPU) to its unitholders over the long term.
Execution and Timeline
The transaction is scheduled to close on or before September 30, 2026. Because both the Trust and the seller share a common sponsor, the deal is classified as a related party transaction. The company has confirmed that the valuation and terms were determined at arm’s length. A long-stop date of December 31, 2026, has been established to ensure flexibility in finalizing the transfer of ownership.
Context Metrics
The combined turnover for the target SPVs has shown steady performance over recent years, recording INR 306.59 crore in FY2026, INR 249.02 crore in FY2025, and INR 258.44 crore in FY2024. These figures highlight the operational cash-generating capacity of the road assets being integrated.
What to track next
Investors should monitor the official confirmation of the transaction closing by the September end target. Future disclosures regarding the cash flow contribution of these specific assets will be crucial to gauging the impact on the next DPU payout cycle.