S&R Associates represented IRB Infrastructure Developments Limited ("IRB"), one of India's largest private roads and highways infrastructure developers, in investments of approximately Rs. 37,530 million in its roads platform by affiliates of GIC, Singapore's sovereign wealth fund.The investment was through a private placement of units by India's first unlisted infrastructure...
S&R Associates represented IRB Infrastructure Developments Limited ("IRB"), one of India's largest private roads and highways infrastructure developers, in investments of approximately Rs. 37,530 million in its roads platform by affiliates of GIC, Singapore's sovereign wealth fund.
The investment was through a private placement of units by India's first unlisted infrastructure investment trust, IRB Infrastructure Trust, sponsored by IRB. As indicated in the press release, this is the largest transaction in the roads and highways sector in India.
IRB announced receipt of the investments from GIC by a Press Release. According to the Press Release, IRB Infrastructure Trust has received the first tranche of the Investment of Rs. 3753 crores from GIC affiliates out of its commitment of Rs. 4,400 crores. The allotment of units to the Investors will take place by February 27th, 2020. Post the allotment of units, IRB will hold 51% and GIC affiliates will hold 49% stake in the Private InvIT.
According to the Press Release, this is the largest transaction in the roads and highways sector in India.
As part of the transaction, IRB will transfer 9 of its BOT assets ("Portfolio") into a Private InvIT in which IRB will hold a controlling stake of 51%. The Portfolio spans across c.5,900 lane kms in Haryana, Uttar Pradesh, Rajasthan & Gujarat, Maharashtra and Karnataka. All 9 assets in the Portfolio are revenue generating assets. The investment proceeds will be used for deleveraging the portfolio and for equity funding for under-construction projects.
IRB Infrastructure Developers Ltd (IRB) is one of the largest private roads and highways infrastructure developers in India having strong track record of constructing over 12,600 lane Kms in last two decades.
GIC is a leading global investment firm established in 1981 to manage Singapore's foreign reserves. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure.
The S&R team was led by partners Sandip Bhagat and Sudip Mahapatra, and included associates Pratichi Mishra, Sushmita Sur, Utkarsh Mishra, Soumalya Saha, Rohini Sud and Namita Varghese.