IRB Infrastructure to set up Infra Investment Fund by March

IRB Infrastructure, one of the leading domestic road developers, today said it has decided to set up an Infrastructure Investment Trust by March next year to sell or transfer stake in SPVs to facilitate generation of funds.
"SEBI has facilitated formation of Infrastructure Investment Trust... In this year's financial bill most of the tax issues associated with the same has also been resolved... company has decided to form an Infrastructure Investment Trust...
"... We are hopeful to take this process to logical end before the end of current financial year," IRB Infra CMD Virendra Mhaiskar said today.
He was addressing the shareholders of the company during the annual general meeting.

The Board of Directors approved formation of the Trust by the company and to act as its sponsor besides constitution of a committee of directors to facilitate its formation and authorised the panel to transfer undertaking/s of the company to the Trust.
"The company intends to sell or transfer its shareholding in its operational SPVs... To the Infrastructure Investment Trusts, to enable generation of funds commensurate with valuation of its holdings in the SPVs.

"Thus, the role of IRB will be to adopt 'BEST' policy which means IRB will 'bid' for the project, 'execute' the same, 'stabilise' it and then 'transfer' the same to the Trust," Mhaiskar said.

He said with the new government firmly in the saddle, the road infrastructure sector saw a renewed impetus in the last financial year which saw a gradual momentum in BOT projects awards.
During 2014-15, around 3,060 kms of national highways were awarded by NHAI compared to 1,435 kms in the year before.
Enunciating the measures taken by the government to revive investor sentiments in the road sector, Mhaiskar said, "We are doing our bit in driving these initiatives to the level we can; and continue to extend our footprint to create new pathways of progress that will transform India.
"In last few months, we have added two new projects in our kitty... Mumbai Pune Phase II and Agra Etawah 6-laning Project."

He said the company's order book has reached about Rs 12,631 crore.
Of this, Rs 10,770 crore construction order book is to be executed over the next 3-4 years which provides good visibility to the company's construction vertical.
"During the year, we saw strong surge in out BOT revenues owing to multiple factors... We expect to see continued growth in our cash flows from operations. This will enable us to sustain our growth momentum," he said.
The shares of the company closed 0.69 per cent up at Rs 225.95 apiece on the BSE.