IRB Infrastructure has approved the sale of its Gandeva Ena (VM7) hybrid annuity model project to the IRB InvIT Fund for Rs 5.13 billion. The asset forms part of the upcoming Delhi–Mumbai Greenfield Expressway and will be transferred along with its associated project debt, the company said.

Under the proposed transaction, IRB Infrastructure will receive Rs 5.13 billion as full equity consideration at the time of transfer. The company noted that the move will significantly improve its consolidated net debt-to-equity ratio. It has also agreed to continue as the project manager for the VM7 project after the transfer to the Public InvIT.

The Gandeva Ena project involves the eight-laning of a key highway stretch in Gujarat under Package-VII of the Bharatmala Pariyojana. The asset is currently managed by VM7 Expressway, a wholly owned subsidiary of IRB Infrastructure, under a concession granted by the National Highways Authority of India.

News source: Business Standard