With regards to annual fastag, it applies to toll roads of NHAI, not those which are delveloped by the State Govt or its arms. One needs to look into how many assets are not contracts from NHAI
Surprising trading activities and not sure how these are permitted by Sebi. Kotak Mahinda Bank gets units in preferential QIP at 60 and sells in market within days
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Declared 2nd Distribution of Rs. 1.50/- per Unit, for the financial year 2025-26. The distribution will be paid as Re. 0.90/- per Unit as Interest, Re. 0.48/- per unit as return of capital subject to applicable taxes, if any and Re. 0.12 /- per unit as exempt dividend.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/11a07fd7-bddb-429b-8ba1-fed0b3fdd292.pdf
The 3 new assets came into the books in November but the additional units, to finance them came into play, well before this quarterās record date. With the units swelling, and the cash flow from new assets yet to accrue, I am glad that they could put together 1.5 atleast as DPU. Obviously something else, would have helped in it and not the mere 10-11% toll increase that happens Y on Y from existing old assets.
Looking ahead, even the next distribution too wonāt be normal since Oct is still with the old assets only. It will all get normal, only from Janā26 qtr onwards.
All said and done, IRB invit has proved that they can digest this much quantum of fund raising and placement, to add the assets. The sheer longevity addition of the new assets is stellar by all meansā¦what will be the reset on DPU? on to concallā¦
PS - invested and biased
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Looks like, NAV per unit from ā¹96.60 (as of 30 Sep 2025 with 6 SPVs) will come down, after adding the new SPVs, to approx ā¹82**.
** Rough calculation:
(30 Sep 2025) 6 SPVs
NAV = ā¹5607 crores
Shares = 58.05 crores
NAV per unit = ā¹96.603 SPVs
EV = ā¹8436 crores (as per Half yearly report)
Debt = 3600 (as per concall)
NAV = ā¹4836
Additional shares = 70.11 croresThat means, 9 SPVs
NAV = ā¹10443 crores
Shares = 128.16 crores
NAV per unit = ā¹81.48I wonder if this is the right way to calculate revised NAV. Probably that ā¹3600 crores debt is incorrect after part of it handled through equity dilution?
That is 15% down! Where did this 15% value go, I think to the private InvIT. What investors get in return, InvIT survives longer.
What is the point of keeping InvIT alive, if it only helps to transfer the value to the private InvIT in stages. It also helps to lengthen the employment tenure of the management. I donāt know if there is anything for the investors in this exercise, except the loss of value.
Yes, as per CMP, the InvIT is still about 25% discount to the NAV. But that means nothing, if we consider the value may eventually be transferred to the private InvIT.
NOTE
I consider myself a novice investor; here for learning and improving my understanding. I welcome corrections (to calculations and my views/biases).
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I am not sure on the way you have calculated the NAV post addition of new assets on 5th November and would wait for management clarification on dilution or intent of taking new assets which may favor their parent company more.
Any other financial expert can check on the dilution and revert on the current NAV post this dilution.
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Many queries answered in recent concall
NAV between 75-80
Current levels may not see any appreciation for near future
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Hi Amit,
Can you please share the link of the concall as I am not able to find it. Also is the 6.5 rs is for the entire year which is reduction of payment of current 8rs per year. I thought the 1.5 rs quarter is only for Q2 & Q3 of this year as the assets have been acquired in the mid of the quarter. If its 6.5 per year then the yield will be very low at 10.6 % year. Thanks for your answer.
Concall-IRB-InvIT-13112025.pdf (227.9 KB)
Investors disappointment evident
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I think the NAV calculation here is quite straightforward. Earlier, the NAV was around ā¹93āā¹94. The QIP was issued at ā¹60, and the preferential allotment made to IRB and L&T was at ā¹63. Considering these factors, a blended valuation of the two would place the NAV in the range of approximately ā¹75 to ā¹80
NAV reduced from ā¹96.60 to ā¹75-80 which is 17-22% fall. Both NAV and DPU are reduced. Then what is the point of the acquisition? The justification given:
when you have a growth asset that compounds consistently, there is a natural mismatch between the life of the existing assets and the life of the asset being acquired. If the new asset has a much longer residual life, the initial DPU is bound to adjust downwards.
I donāt think this is clear me. I guess this sort of means, the revenues will grow later only.
Otherwise, increasing the life of InvIT seems to be the only thing management keep talking as the benefit from these acquisitions. I still donāt understand how this helps the unit holders when the overall value is taken away.
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It could be possible that new asset is less profitable. Therefore making DPU of 8 unsustainable.
Thatās why, they might be reducing DPU. I am new to InvIT and maybe I am wrong.
Agreed. As an investor, what we care about is the value of our investments, and the NAV is supposed to be an indicator of the value. Any action that reduces the NAV, i.e. the value, is by definition not in the interests of shareholders / unitholders.
These sort of acquisitions - others do it too, a particularly egregious one by Brookfield REIT a couple of years ago comes to mind - should be prohibited by SEBI. Because these are quite clearly hurting us minority shareholders and benefiting only the promoters/sponsors.
On the other hand - I still have a tactical allocation to IRB InvIT Fund, having entered only recently. I will keep it for now, because this seems to be the only InvIT undervalued in the market as of now. But these sort of actions illustrate that there is probably a good reason why it is undervalued.
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This is the 1st toll collection report, after acquisition of the 3 assets (6/7/8 above)
Report came on 9th Dec at the exchangeā¦Pathankot is not a direct comparison across years,so, read the fine print below the table
Post tax Yield tables, based on running 4 qtrsā¦before you deep dive into the numbers, here are some important points to be read
- The separation of taxable and non-taxable is a tedious job and one can be only sure, if you have the distribution advice (one can look at the TDS and if there is TDS, I take it as taxable). Since I donāt own every single REIT and INVIT below, there can be an odd mistake but that is why, I am giving the underlying table, that feeds into this yield calculation. I am no expert in Tax and hence do your diligence
- The fine print in IRBās case is that, I have assumed, the last qtr payment of 1.5 DPU (and its breakup) as the common one across the entire year since using the previous 2 DPU will not give the correct picture
- The intent as always is that , if you go and buy these instruments today morning at 9.15 AM (assuming they open at the previous day close price), then what will be the yield on hand? that is the intentā¦
- Comments are always welcome
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