Leading highway developer IRB Infrastructure Developers Ltd. has set an ambitious target to expand its asset base to Rs 1.4 lakh crore over the next three years, leveraging its BEST strategy and recent asset transfers.
Strategic Growth Plan
IRB is implementing its BEST policy, which involves:
- Bidding for new highway projects
- Executing them in a private environment
- Stabilizing operations to reduce risk
- Transferring projects to its publicly listed IRB InvIT Fund
The company recently transferred three build–operate–transfer (BOT) highway assets to its public InvIT for Rs 4,905 crore, with an enterprise value of Rs 8,500 crore.
Capital Utilization & Expansion
The funds from asset transfers will be reinvested into Rs 15,000 crore worth of new projects, focusing on toll-operate-transfer (TOT) and BOT road projects.
IRB aims to double its highway asset base, growing from Rs 80,000 crore to Rs 1.4 lakh crore, with an annual deployment of Rs 15,000–20,000 crore.
Market Outlook & Investor Confidence
IRB’s strategy ensures inflation-beating returns, with toll revenue expected to grow 9–10% annually, offering yields 300–350 basis points above government securities.
With a robust order book of Rs 31,000 crore, IRB is well-positioned to execute high-value infrastructure projects and strengthen its leadership in India’s highway development sector.
For more updates on infrastructure investments and road sector developments, stay tuned! 🚀
