Rs 33,600 crore order book: Stock under Rs 50; Company to acquire 3 BOT road SPVs for Rs 8,436 crore, expanding O&M order book by Rs 3,100 crore!

IRB Infrastructure Developers Limited (IRB) is set to significantly expand its portfolio and operations. Unitholders of IRB InvIT Fund, a publicly listed Infrastructure Investment Trust sponsored by IRB, have overwhelmingly approved the acquisition of three Build-Operate-Toll (BOT) road Special Purpose Vehicles (SPVs) from IRB Infrastructure Trust, an associated private InvIT. This strategic move, valued at an enterprise value of Rs 8,436 crore as of June 30, 2025, includes the Project SPVs: IRB Hapur Moradabad Tollway Limited, Kaithal Tollway Limited, and Kishangarh Gulabpura Tollway Limited.

In addition to the acquisition, the unitholders also gave their nod to appoint IRB as the project manager for the operation and maintenance (O&M) activities of these newly acquired SPVs. This will substantially boost IRB's O&M order book by approximately Rs 3,100 crore, bringing its total O&M order book to an impressive Rs 33,600 crore post-acquisition. The transaction, based on a binding term sheet executed on May 30, 2025, is still subject to necessary regulatory approvals and compliances.

About IRB Infrastructure Developers Ltd

IRB Infrastructure Developers Limited, established as India's first integrated multi-national transport infrastructure developer in the roads and highways sector, holds multiple ISO certifications. These include ISO 9001 for Quality, ISO 14001 for Environment Management, ISO 45001 for Occupational Health and Safety, and ISO 27001 for IT Security, all granted by ISOQAR, United Kingdom. As of March 31, 2025, IRB stands as the largest integrated private toll roads and highways infrastructure developer in India based on lane kilometres, boasting an approximate asset base of Rs 80,000 crore. Its operations span across 12 Indian states, facilitated through both the company itself and two InvITs.

With over 25 years of experience in India, IRB has a proven track record of constructing, tolling, operating, and maintaining approximately 19,000 lane kilometres nationwide as of March 31, 2025, with about 15,500 lane kilometres currently under its management. The IRB group held a market share of around 33 per cent in the awarded toll-operated transfer (TOT) space as of March 31, 2025. Furthermore, it contributes approximately 14 per cent to the Golden Quadrilateral Highway Project and 12 per cent to India’s north-south highway connectivity, as of March 31, 2025. The group has successfully completed 13 concessions, transferring them to the relevant nodal agencies. Its current portfolio encompasses 26 road projects, consisting of 18 build-operate-transfer (BOT) projects, 4 TOT projects, and 4 hybrid annuity model (HAM) projects.

The company has a market cap of over Rs 29,000 crore. As of March 2025, LIC owns a 3.68 per cent stake in the company and has an order book worth Rs 33,600 crore as of July 04, 2025. The stock is up by 21.7 per cent from its 52-week low of Rs 45.05 per share and has given multibagger returns of 400 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.