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IRB Infrastructure Developers Ltd
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Good evening, ladies and gentlemen. Welcome to the IRB Infrastructure Developers conference call for discussing the unaudited financial results for the quarter ended September 2021 and recent developments. We have with us on the call today, Mr. Virendra Mhaiskar, Mr. Sudhir Hoshing; Mr. Dhananjay Joshi, Mr. Anil Yadav, Mr. Mehul Patel, Ms. Poonam Nishal and Mr. Tushar Kawedia from IRB. From the Cintra team, we are joined by Mr. Carlos Ugarte, and from the Avener Capital, we have Mr. Rajkamal Bajaj and Mr. Shivam Bajaj on the call. [Operator Instructions] Please note that the duration of the call will be 45 minutes and any queries left unanswered after the call can be subsequently mailed to the management for adequate response and resolution. Please note that this conference is being recorded. I now hand over the conference to Mr. Mhaiskar to give you an overview of the significant developments during the quarter. Thank you, and over to you, sir.
A very good evening to all of you. A warm welcome to all the stakeholders. We had our second quarter results today and the sale we are promising for [ other ] review, given the fact that it's a monsoon quarter and we have continued impact of the second wave of COVID. The detailed presentation for the sale is already on the website, and my team will be happy to take questions from you on it later. Over the last 2 years, the company achieved many successes, the prominent being the winning back of the Mumbai-Pune BOT, country's largest, entering HAM projects, winning the first BOT in the state of Bengal under the new model concession agreement, to name a few. However, limited availability of capital and great opportunities require the company to access debt capital markets, increasing financial burden. COVID, land availability, and other force majeure [ remains ] restricted the cash flow availability for the business model, reducing EPC cash flow generation and dividend. Now as we return to growth and look at the strong initiatives of the government to bring in private sector in infra development in a meaningful way, we thought it necessary to prepare for it in [ right earnest ]. We realized we needed to address the twin issues of reducing debt meaningfully and also have substantial growth capital for foreseeable future. But by bringing in capital, we also wanted to ensure we bring in the best names to the IRB family who can help us sharpen our focus further and our strong all-weather friends who believe in our value-generation philosophy and would have the appetite for more as we grow from hereon. We are more than delighted to announce that the Board today has approved issue of equity shares by means of preferential allotment to Cintra, a 100% subsidiary of the $23 billion global infra major Ferrovial, to the extent of 24.9%. We are also extremely happy to announce that we will also be allotting equity shares at preferential allotment to one of the largest sovereign wealth funds GIC Singapore, by which their holding in the company will increase to approximately 19.9%. Total amount of up to INR 5,347 crores will be raised as a part of this exercise. The first deal shareholding will constitute the existing promoter holding to come down to approximately 34% while continuing to have management control of the company and will also continue to be the single largest shareholder of the company. We are very happy to welcome Ferrovial into India. It's worth mentioning that they have made an investment in not only India but the whole of Asia. While they have significant presence in Europe, U.K. and U.S.A., they had no investment in Asia so far. We deeply appreciate their endeavor to choose India, among all of Asia, for their first investment in the region and for [ disturbing their confidence ] of IRB within India to make this point. As regards GIC, you are already aware that they have already invested INR 4,400-odd crores in our private investment trust and are already among existing shareholders, and this further investment by them in the company's listed shares is a further stamp of confidence on the robust business model of IRB. From the issue proceeds, we intend to deleverage the holding company debt and working capital to the extent of INR 3,500 crores. Approximately INR 1,500 crores will be kept as growth capital for upcoming opportunities of at least INR 20,000 crores. And the balance, INR 350-odd crores, will be utilized for general corporate purposes and issue expenses. If I look at the net debt to EBITDA on the construction segment itself, the pre-deal 3.6 net debt-to-EBITDA ratio will come down to 0.2. The net interest coverage ratio at the stand-alone and Construction segment will reduce -- will increase from 1.9 to 2.7.Overall, if I look at the consolidated net debt to EBITDA, the ratio will come down from 4.7 to 3.2, and the interest coverage will improve from 2 to 2.8.Net debt to equity on a consol basis will also significantly improve from 2.1 to 1.2. The strategy we initiated in 2017 by sponsoring the first public InvIT, provided IRB a platform to churn the capital. This strategy was further extended in 2019 by sponsoring the private InvIT, which enhanced the business model by getting a recurrent investor for reducing equity commitments, thus increasing the ability to take in more projects at one time. The current transaction, which addresses the twin objectives of deleveraging the holding company debt and providing growth capital, is the final step in optimizing the capital structure, unleashing free cash flow generation for growth, thus increasing immense shareholder value. We can now firmly say that we have a future-ready company with best-in-class investors who will help us charter our business practices and also provide the financial strength required to grow meaningfully. We thank the incoming investors for their commitment and look forward to a willing -- to a fulfilling and exciting journey ahead for all our stakeholders. I would also like to thank our advisers and the entire deal team for all the efforts that they have taken in a [ timely ] manner to make this deal happen. I believe I have given all the details of the transaction to all of you. I would now request to open the floor for question and answer.
[Operator Instructions] The first question is from the line of Parikshit Kandpal from HDFC Securities.
Congratulations on the [ pack in scheme also ]
[ If I could jump in ] But your voice is a bit feeble, so if you could just speak a bit louder, please?
Is it better now?
Yes, much better. Thank you very much.
Congratulations [ so far ] for closing the deal [ in the ] sector. First question was, after the deal happens, are you looking at non-road segments also? Like in other national [ OG ] pipeline has got so many different segments. So will we consider diversifying into other segments? Or roads will primarily be our focus area [ after ]?
No, no, no. I think we will be only focusing on road development. Yes, I understand the question where it's coming from, but the partnership and the strategy hereon is only to remain focused on roads.
Okay. The second question is, can Cintra -- for Cintra now in India, this IRB platform will be the only platform? Or they can have competing or panel platforms with other players? Or can they directly also invest in India? What is the [ concept ] around that?
Carlos, do you want to take that?
Can you repeat? I didn't understand more the question. So I only hear [ a few ] so if you can put it...
So I'll repeat my question, sir. So my question was for Cintra, will the investments in India be largely done through the IRB platform? Or are you open to look at other opportunities, competing opportunities, with other developers? Or also directly whether you are looking to have exposure in India? So I just wanted your thoughts on that. Hello?
Can you hear me now?
Yes, yes, it's better. Did you get my question [ on this ]?
I did get your question, yes. So investing in IRB Infrastructure Developer [ foreseek a ] great opportunity to expand our market. We have been looking at different big markets other than the U.S. We are mainly focused on the U.S. on the road sector. And we analyze like 2 or 3 big markets in the world. And we decided that India was the most promising market to tackle with. And to go into a market like India, which is a very complex market in growth, you have to go with the best in the market, and that's why we decided to go and understand the market first by a position and go with IRB. So we have no intention to tackle the market outside the IRB platform for the time being. So right now, our intention is to learn, one, from IRB on this market, help them get the best practices and know-how that we have as a worldwide developer, adapt or helping ESG policy to bring the company to be the best in the market. And so far, that's our intention. We don't want -- we are not, I would say, so I was going to believe that we can just came to a big and developed market. India is a big and developed market in the infrastructure and on the P3 markets or private public partnership and think that we can just do without the help of the leader in the market. And that's why I think this is [ suitable way to go out ]. We're very thankful for IRB that they have opened the door for us to [ come in ] with them.
Okay. Sir, just last question really, sir. So what kind of credit lines does this transaction open us for on the debt side? Normally enough equity and growth capital, and we are also looking at deleveraging. And we have been on a deleveraging exercise for last 2, 3 years. So what does -- what kind of credit line does this transaction open out for us?
So I try to simplify this. If I look at IRB as a business model, we have 2 investments. Both are on autopilot. They are self-sufficient, generating positive cash flow. We have 7 assets in IRB which have been generating positive cash flows. There is no stress in any of those. They are doing well for them there. We have holding company debt, which is now going to get significantly repaid. And plus, as I explained, we will have almost INR 1,500 crores worth of gross capital available to look at the new opportunities. I will try to give you a simple math, which will give you the idea of what kind of growth power will be unleashed as a result of this INR 1,500 crores of growth capital. If I look at the BOT project of INR 5,000 crores, usually, you would have INR 650 crores of debt on a conservative basis and INR 350 crores of equity. We already have a private InvIT where we have the option of selling down up to 49% equity to our partners. And that would reduce IRB's equity commitment to around INR 175 crores in a project size of INR 1,000 crores. As you very well know, IRB execute this project and does the construction of the same and has a decent construction margin. If you go by the past record of 10% PAT margin, you will generate around INR 100 crores of construction profit while you're doing INR 1,000 crores of project. So your net equity requirements on the project, if you redeploy the construction profit, will be around INR 75 crores, which is around 7.5% of your project cost. So if we decide that the surplus is from private InvIT, public InvIT existing stand-alone projects in IRB are only to be used to accumulate cash for dividending it out or for the deleveraging purpose, then the INR 1,500 crores extrapolated to assume 7.5% equity commitment to be made from them will catapault you to give an opportunity size of almost INR 20,000 crores of projects where this growth capital can be deployed. And that size of projects can be comfortably executed by the company.
Next question is from the line of Vibhor Singhal from PhillipCapital.
Congrats again on this great [ vision of sor ] capital. I think, sir, as you rightly mentioned, it's probably one of the largest countries in the road segment by any company in India. So I just wanted one kind of question and then a couple of bookkeeping questions which [ I'll ] probably asked later. Sir, in terms of -- as we mentioned just in Parikshit's question, that we will only be focusing on road segment. So any change in our, let's say, stance towards the road segment now that we have got so much capital at our disposal? Our stand-alone debt is also significantly reduced. Because as we have seen I think the BOT opportunity from the NHI has been tapering off over the past 3, 4 years, we have to get out there. But I think as we have seen, there is too much of competition and small players are also getting into that segment as well. So any shift in focus on, let's say, I mean, we, of course, I'm sure we're moving towards state because it's also. But those opportunities are also few and far between. So I'm just trying to understand what would our [ goal be and ] the GIC coming on board, I mean, how are we going to whet their appetite on such as this opportunity if the opportunity reducing the loan segment itself?
I get your question, but I partly disagree with you that the opportunities are decreasing. Because after the new model concession agreement has been announced, the government has been on an awarding spree. We have -- they have already come out with 2 BOT projects in Bengal, 1 of which was [ on the abitel ]. And now they have announced another 2 projects in Maharashtra, again, 4 to 6 lane projects worth almost INR 4,000 crores. And what we hear from them is increasingly looking at the confidence and the participation that is coming back in the BOT. More and more BOT projects will get announced in what we get to hear from them. TOT project pipeline also looks very, very significantly promising. So to answer your question, the waterfall mechanism in terms of our preference will continue to be BOT, TOT, HAM and EPC. And in terms of significant deleveraging that is happening, yes, our competitive advantage with the lower interest outgo, it will also be allowing us to sharpen our bidding strategy in the HAM sector. So certainly, we will also look at the HAM opportunities in the right [ earnest ].
And sir, would we be open to any EPC projects? But I mean as all part of waterfall, as you mentioned, it's probably been the last leg of the entire sales ladder. But let's say, if there is a very good project, large size to get where margins are lucrative, would we be open to EPC projects also?
I don't see that we're reaching that last part of the waterfall because the BOT, TOT itself will be so many that I don't think we will have to really dive below that.
Got it, sir. And sir, any update on the [ white put say ] building that would be -- I mean, I mean, what stage is it in right now? And do you foresee that being awarded before the elections [ in uded ]
No I think you need to ask the UPC secretary this question.
Okay. Sure. So just a couple of bookkeeping questions. So sir, what is the time line that you're expecting for this transaction to be completed?
We should be able to wrap up this transaction in this calendar year.
Okay. So by March next year, we should be able to wrap up this transaction.
This calendar year.
Yes, so March next year? March actually. So FY '22 is what we're looking at? Calendar, sorry. Got you. Sorry. And just to reiterate, we are looking at, let's say, approximately 24.9% stake for the Central Group and 15.9% stake for the VIP group and both have been issued the shares at a price of INR 100 crore per share.
Yes, INR 211.79 preferential allotment, 2 separate preferential allotment independent of each other, to Cintra and yes, that's right.
So put together, we are looking at almost INR 25.2 crores new shares to be issued?
Yes. If we look at our total transaction happening together, we should be having around INR 60.39 crores per share.
Next question is from the line of Ashish Shah from Centrum Broking.
And congratulations to the whole team for this one-of-its-kind transaction. Sir, first question is that, will this transaction attract an open offer, given that we are going to be giving more seeds to the incoming investor?
No, I don't think so. It is very clear, they are minority shareholders, and each of them is an independent preferential allotment. They are not [ PITs ]. And very clearly, one of them is crossing the 25% mark.
Sure. right. Sir, secondly, just wanted to understand now that we have an investment with GIC where the thought process was to look at early-stage assets is a public could not take the early stage assets. Now with GIC and Cintra also coming in at the parent company, what will be our stance? What would be now the position of the private InvIT?
Yes. Good question. I think the [ purpose ] is very clear. So the public InvIT will continue to -- we will continue to offer the completed HAM projects and look at turning the assets by selling them down to the public InvIT, that strategy will remain. And in the recurrent investor at the private InvIT level, as I explained earlier, all the BOT, TOT opportunities, we would like to show to the private InvIT platform. And if feasible, we would like to reduce our overall equity commitment by getting them on board those projects. And then execution and the balance equity commitment for all the upcoming projects will be catered to from IRB platform.
Right. So basically, the waterfall in terms of the decision making is that if you are bidding for a new BOT asset, will that be first offered to the private InvIT? Or it will be first with IRB and subsequent stage in [ it will come in the ] ?
I mean from an execution standpoint, it might happen so that it might be executed in IRB where we put in equity in the same proportion and then transfer it on completion to the private InvIT in [ view of ] units to both the partners. But that will be an execution of convenience. But the cost and the strategy of 51 49 will definitely be in place.
So the private infrastructure will continue to remain? It's something which is non ...
See, because private InvIT gives us -- provides us with a platform where we can grow more faster because we have an investor who is willing to take up to 49% equity in those projects. So our ability to build more and execute more goes up significantly, while the construction advantage and construction opportunity will continue to remain with IRB. So that platform is a very, very complementing platform for IRB growth.
Sure. Also, the airport at Sindhudurg, now that it is operational and we already started flights, so any thought process on that? Where will that asset remain? Will that be sold off? It will continue to remain with us?
The thought process is clear, we wanted to complete the asset and make it operational. It will continue to be a noncore asset for us. As a result, as and when we find suitable buyers, we will definitely discuss of [ writing ] it off.
Right. And sir, we also have one of the parts of the deal where we are looking at hiring of noncore assets to the promoters. So given that already we are having adequate capital from this transaction, any particular reason why that transaction is [ already come ]?
That strategy is very simple. We want to take noncore assets out of the balance sheet. And had promoters who were interested in acquiring those assets. And hence, they have agreed to buy those assets over a period of 2 years.
And lastly, how much [ debt ] remains in the EPC arm after the repayment of INR 3,250 crores of debt?
If I retain the side, around INR 5,500 crores of the total debt, around INR 3,500 crores of that will get paid off. So the [ total ] bond debt of INR 2,200 crores and another INR 400 crores from another [ debt ] so around close to INR 3,000 crores is what will remain. But that debt is self-liquidating in terms of specific cash flows linked to them.
Next question is from the line of Mohit Kumar from DAM Capital.
And congratulations on the massive deal, I think it is one of the largest deal in the road sector this fiscal year. Sir, my question is does your growth ambition change materially post the deal? In the sense, let's say, looking at some x amount of growth, are you willing to looking at a much, much higher growth with the new growth capital and lower deleveraging? And related question is, does it mean, given the fact that GIC has [ input ] on the board, does it mean that the dividend will become -- will increase as we go forward?
It will be a balance of both. What I can say is we see a lot of aggression in certain pockets of the market, and we want to be very cautious and ensure that we are able to generate a decent amount of profit for our shareholders. So keeping that perspective in mind, we will try to grow faster. So yes, the firepower that the company now has definitely puts it much higher in the overall competitive scenario to other opportunities that come up. But at the same time, we will be very, very meaningful in terms of being fully careful that we don't want to commit ourselves to something where reasonable returns are not guaranteed. So we will be very cautious [ in to be ] on that part. And balancing our book [ this thing ], we will deploy the capital that we have. And as I said in the earlier [ math ], we now have a INR 20,000 crore of order book expansion growth capital available. And this is without touching the subsidies from private InvIT, public InvIT and asset that [ take up our I InvIT ]. So that pool of cash certainly continues to remain available for catering to the shareholder dividend requirement.
Secondly, on the fact that in the presentation, I see that there is the -- in the -- it says that the 2 transactions are subject to execution of definitive document. And if it doesn't happen on time, it will reduce to -- the amount will reduce to INR 43 billion or INR 44 billion. Can you please explain the ...
To explain it in a very simplistic manner, I would say that, as I clarified earlier, there is no open offer happening here. These are minority shareholding positions both of them are taking independently. So as you understand, when the regulatory approvals come through, you have to conduct the allotment in a very time-bound manner. So in an unlikely situation where one of them gets the approval and the other one gets delayed, we don't want to have any situation of them crossing the 25% mark. And from that perspective, this particular minimum and maximum numbers have been stipulated. It's a very, very remote situation to my mind. But that's a safeguard that has been built into -- by the investors by seeking the opportunity.
Lastly, on the -- given the fact that GIC has a seat on the board, does it mean that TOT will get much higher priority in bidding compared to less BOT, [ do you think ]?
No to my mind because our priority has been construction. And BOT will always remain the top priority, after which it will be TOT.
And [ are go ATM ] -- or do you think it would take a back seat?
It will not change. So it will always be BOT, TOT, HAM in that [ preference ].
And sir, what do you make out of the Ganga [ Tres ], do you think it is -- you would like to participate in the bidding?
We are still studying the bid. So too early in the day to comment anything on it.
Next question is from the line of Love Sharma from Lombard Odier Investment Management. Love, can you speak slightly louder, because your voice...
Sure. Yes, is it better now?
Yes, much better. Thank you.
Yes. Okay. Just one quick question. I think you elaborated about deleveraging at the holding company, which is likely to be around INR 3,500 crores. I just wanted to understand, in terms of the debt, which is the [ emom ], I believe this will be local onshore bank debt. So could you just elaborate further on that? And plus the -- is there any other further deleveraging plans which you have outlined going forward? [ Other ]...
You are right. The repayment will be primarily domestic debt. The dollar bond that we raised early this year is not something we are looking to prepay, that is a self-liquidating asset and that will continue on the books.
Okay. And how about the asset monetization, the noncore assets which you outlined, how much of amount of proceeds you are expecting to get from those over the next 2 years?
So around INR 450 crores to INR [ 470 ] crores as promoters we will be putting into the company to buy those noncore assets. And other than that, as I explained, we will continue to explore the possibility of hiving off the airport [ asset ].
Understood. So INR 450 crore quantum, does it include the sort of estimated value for the airport assets?
No, no. This is only for the 2 specific assets part of the land and the [ Chandivali ] property is what we will pay for the land, INR 420 crores or acquiring those 2 assets and [ stay ]. If we are able to sell up the airport assets, that will be further about that will come into the company. That is not a part of this.
And just going forward, just to understand the leverage target which you have in mind going forward, could you elaborate where you see the leverage trending towards from here?
Interesting question. We have not put a new target on it, but the way the cash flows are going to size up, I think the leverage will continue to remain low because we are going to reach a very, very interesting scenario where we have both capital which takes care for our growth for next couple of years. And by that time the private InvIT assets also will start generating meaningful cash. [ Cope remains ] is already cash positive. And in such a situation, even if we decide to grow in a reasonably good pace, I don't think the leverage will anytime get out of hand now. I think we will be very, very well capitalized to look at growth without significantly increasing the leverage ratios.
Understood. Perfect. Now that's very, very clear and very, very -- very, very helpful to understand the details. Thanks again and congrats on the transaction.
[Operator Instructions] Next question is from the line of Teena Virmani from Kotak Institutional Equities.
Sir, congratulations on the deal. My question is regarding the future strategy for bidding for projects, like the GIC deal happened initially for the private InvIT, you mentioned that there will be a couple of projects wherein you will be bidding jointly. And we have seen that also in the past 1 or 2 projects wherein GIC has partnered with IRB. Now going forward, for bidding for the new projects, will there be a partnership of Cintra and GIC along with IRB to bid for project? Or it is the growth capital that they have provided in IRB will be bidding on its own?
No, no. I think IRB will be bidding on its own. They are already putting capital into the company. And as I made clear earlier, the current platform of private InvIT continues to remain -- continues to remain [ amicable ] for growth. So any BOT asset or TOT asset, definitely, we will show the opportunity to look at it. And if that makes sense, then we will develop that project from that particular platform. We might execute it on the same principle of 51 49 and then transfer it to the trust. But that particular opportunity will remain. I don't think that we are discussing a triangular asset level investment at this point in time.
Okay. Okay. Got it. And regarding the deleveraging plan, there is still some amount which is pending from the private InvIT regarding cost escalations which had happened. So would that also contribute to deleveraging going forward once that amount is received?
Yes, certainly, all the claim [ stakes ] and cost overrun claims that we would be adding on the client, all that debt coming back will be a significant bump up to the IRB cash flows in next 3 to 5 years.
Next question is from the line of Rohit from Antique Stock Broking.
Congratulations on the deal. Sir, my question is on the INR 20,000 crore growth capital that you said. You have given a time line that within 2 years this would be deployed. So essentially, we are looking at INR 1,000 crores of orders every year.
I don't think I said 2 years. I just said that the INR 1,500 crore amount does give us firepower to look at asset up to INR [ 20,000 ] crores. If your wish comes true and if we are able to deploy it in 2 years, something like that. But that's the kind of firepower we would have with us.
My second question is more on the BOT monetization plan. Is there number polarity? Do you have any asset monetization or [ stake tension ] on cards as of now?
So if you look at, we have always participated in all the earlier NHI BOTs, although we have been very cautious with that like what we have in Mumbai-Pune. So we would continue to cautiously bid for those BOTs. And if they make -- and if they are able to generate good returns, then we would certainly look at dipping into those opportunities as well.
No, sir, my question is more to do with the stake sale within the Mumbai-Pune BOT. Do you plan to open up this particular -- this current stake that you have in some maybe GIC or maybe to private InvIT? Do you see something like that?
No. I don't -- we don't have any plans of selling stake in Mumbai-Pune to either public InvIT or private InvIT for now.
Next question is from the line of Bharanidhar Vijayakumar from Spark Capital.
So if I understand right, our existing promoter shareholding of around 59% is going to get diluted to around 34% post the deal. Is that right, sir?
That's correct.
And in the presentation, we mentioned there will be a 66% overall sales putting by others. So that will include Cintra and the GIC post the deal?
That is right.
Okay. And in the future, when we are bidding for BOT projects, it will be IRB infra developers which will be bidding?
Absolutely right.
So at the SPV level, there will be only IRB Infrastructure Developers who will be holding the equity?
To begin with, yes. If we decide to develop that particular opportunity in the private InvIT platform, then for that particular project, the equity holding can be 51, IRB and 49, GICs.
Okay. So on the SPV level, there will be -- there is a possibility that BOT would bring in equity later on that space.
Yes. I mean that is what has been our stated position, that any new BOT and TOT projects, we would be certainly showing them to the private InvIT. And if it garners interest, then the same will be executed on 51-49 [ percentage ].
Okay. And in some sense, this looks like GIC being interested in BOT also, which is why they are doing this, because predominantly this private InvIT where they already have 51% stake, they are most likely to have more of -- or almost all [ IKM ] projects.
I would not be the right person to comment on that.
Okay. Okay. No, because I'm trying to understand this INR 1,000 crore investment from GIC, they could have done this through the private InvIT.
I think GIC has been a shareholder in ISP for now more than 5 years. And as a shareholder, they have been in the listed company for more than 5 years, they have some stake in the public InvIT as well.
The next question is from the line of Prem Khurana from Anand Rathi.
Congratulations on the transaction. So just -- I mean to begin with, would you be able to kind of remind us how much of the equity [ remaining existing ] projects? And when you say this INR 1,500-odd crores is earmarked from this transaction for equity commitments, would this INR 1,500 crores be available for the existing set of projects? Or I mean this is broadly for the new project that you would go in debt for now?
If you look at the cash on hand, I think that sufficiently takes care of the equity commitment for the project which we already have. And this INR 1,500 crores will certainly cater to the equity requirements of further INR 30,000 crores of projects.
Sure. And let's say, I mean, once we've exhausted INR 1,500-odd crores, would you go for incremental -- I mean, would the partner be willing to kind of infuse more to then look at more opportunities? Or again, I mean you would start deleveraging towards our [ next so ] our balance sheet so that the growth continues?
See, it will need to be looked at in a perspective where we have a sizable portfolio of projects in the private InvIT which are in the last leg of completion of the execution phase. So over the next 2 to 3 years, as those assets stabilize, we have already delevered those assets significantly. So those assets will also start pumping surplus cash. Plus Mumbai-Pune will be a cash flow-positive project, which will be adding cash to the company's results. So to my mind, further incremental capital will not be necessary once this INR 1,500 crores gets deployed over next reasonable time frame. And those surpluses will keep giving the firepower for the company to grow in a meaningful manner.
Sure. On the operations side, I think last year we had 3 new projects and we've recently been able to manage this [ structure as regular ]. Any sense on the appointed dates? I think we were expecting appointed dates for a couple of projects in September itself, but seems to have been delayed for some reason. So if you could just share your thoughts on these new projects and how do you see appointed dates start coming for us on these projects?
I think the [ Began ] project, which we backed on BOT, there is almost 98%, land is already available. And we are in the final stages of achieving the financial closure and taking it forward. As regards the [ Bega Mumbai ] is concerned, we are expecting the appointed date to come in by end of this month as per our discussions with NHI. And this has probably [ secure ] back just now. So the concession agreement also in the [ PSV ] side that it's still time for achieving financial closure on that one.
Sure. And just one last, I mean with your permission. On this transaction again, INR 600-odd crores for general corporate purposes seem to be on a higher side. And also, I mean, this -- given the fact that we're expecting around INR 400-odd crores also to come from the promoters once the transaction is taken care of [ on the chan of the BF eq ]. This INR 1,000-odd crores, especially the 600-odd crores for general corporate purposes, possible to share more light on this general corp? What would get classified as general corporate purposes, please?
Yes. So totally think it's a good problem to have.
Yes, yes, it is very good problem, which is why I want to understand because when we build our model, I mean, we would have to kind of take into account whether this would be again used for growth or something of similar sorts.
Yes. So once we figure out the exact strategy for deploying those [ starts ], we will definitely keep you posted.
Next question is from the line of Ankita Shah from Elara Capital.
Congratulations on the deal. Sir, apart from the funding that we will get from the incoming partner, is there any more competency or capabilities that they can bring into the company?
I think if we look at Cintra's global experience, I think it certainly will add a lot of value to us in terms of improving our system, processes, execution, strategies, bidding on to projects. They will definitely bring in a lot of value add. And that certainly will benefit the company in a very, very meaningful way. I have Carlos also here with me. Carlos, would you like to add some more insight into how you can help us improve from here on?
Yes. Okay. Cintra, I've been -- for the audience, Cintra probably for more than 20 years. I started in Cintra when Cintra first went out of Spain into Latin America and they hired me there, I'm from Chile, I'm not from Spain. We have -- we developed an investment in Latin America for around thousand miles in 1 airport in Chile. And then I went into the U.S. into opening the U.S. In the meantime, I opened Australia, Colombia and other markets. So we -- in all the markets we have opened or we have gone, we have seen that with our expanding experience, Cintra is one of the companies that has most on in the BOT market. Actually, our first role in BOT was awarded in 1968 in Spain. So we have seen that most of the market have the same problem or same characteristics in which we can add value. So we will add value, as Mr. Mhaiskar says, in the processes. We will add value helping from our experience and best practices in leading, in analyzing different opportunities in traffic, in analysis in cost of operation analysis. Obviously we cannot -- we have to be humble and look at this, the success of IRB in this -- in the company in the concession they have already. But we can bring some better practices, some ESG benefits, as I told you before, in the [ BOT ] side on traffic, financing, structuring and also operational procedures. And so I think from now on, our -- as a minority shareholder, our aim is to help the company to improve the system to be #1 in all the areas of, I would say, HAM, BOT and TOT in India so we have a successful investment. And we are willing to send some -- some of our best people to work as advisers throughout the company in these different areas.
Also, sir, given that there is all this activity on the awarding side that you mentioned, would you be able to share some highlight on the order inflow target for this full year in this financial year?
I'm not clear with your question.
So given that you mentioned there is a good opportunity pipeline available in BOT and TOT for this, the order inflow guidance for this financial year. Or how much the target is...
I wouldn't wish today to give you that guidance. but it will predominantly depend on dates for the bid not getting postponed. So visibility looks good. As I said, there are 2 BOTs announced by NHI. There are a couple of state BOT projects. There are 3 or 4 TOT projects all out for bidding. So -- but we will have to carefully evaluate all of them and decide on what to get into and how much we want to open. So I wouldn't give you a number today, but we are very carefully evaluating all of these.
Ladies and gentlemen, we will take the last question for today, which is from Aditya Mongia from Kotak Securities.
Congratulations to all of you. I think the business model of IRB is actually now fully on an autopilot mode. I'm actually finding it difficult to ask questions. I'll still try my luck. Mr. Mhaiskar, congratulations once again. The question that I wanted to kind of ask you is more from the perspective of, this is actually now being in an autopilot mode. As a promoter and as part of the senior management team, where do you want to deploy this bandwidth of the [ other management ] team? What do you envisage in IRB doing incrementally over the next 5 to 10 years? I just thought I'll get that perspective from you now that we are truly at a stage wherein we can do great things.
Aditya, thank you. You very, very appropriately worded it that we are now, with this kind of capital raise, we are on a autopilot mode. All the individual elements of the business will be on autopilot mode. And the focus, as far as where we will be now, along with our newly added technical know-how that we will be able to get. But the focus will be on sharpening the systems, sharpening the bidding acumen, looking very, very carefully on reducing the financing cost, exploring newer structures of financing and overall improving the profitability of the existing projects and deploying capital to ensure that they are profitable projects and will bring in value to the company. So I think this will be the large focus area where we will now concentrate our [ management ].
The second question that I'm not kind of breaking with then you were giving an objective answer, but wanted to getting our objective. You have a $3 billion kind of growth capital, and probably more of your if you want to leverage or lever up to the [ kind of ] level. But I said the $3 billion kind of growth capital, what is the time line that you see for which this can be deployed on roads? Because if [ Cintra's Modi wins ], my sense is we take any between 5 to 10 years for deploying this capital.
If you look at the past few years of IRB's growth, we have been routing in orders of at least $1 to $1.5 billion a year. So if I go back that [ track record far ], bringing in order for 3 million-odd worth of orders, I think we should be able to look in those kind of orders in 2 to 3 years. And [ that ] 2 to 2.5 years for executing those. So yes, I think we have a very, very strong visibility for the next 5 years.
Because that's why I think 3 to 5 years as a horizon in a reasonable case scenario. And again, congratulations to the entire team and happy to be a part of this call. Thank you.
Thank you. I now hand over the proceedings to Mr. Mhaiskar for any closing comments. Over to you, sir.
Thanks all of you for being here on this call, and we will look forward to meet you again very soon on closure of the transaction. And Carlos and the [ deep ] team, thank you all of you for taking time out and being here with me for this presentation. And we wish you a very happy Diwali and new year ahead. Thanks again, and have a great evening.
Thank you very much, members of management. Ladies and gentlemen, this concludes your conference call for today. We thank you for your participation and for using [ Rosenzweig's ] conferencing services. You may please disconnect your lines now. Thank you, and have a great day.