IRB INVIT TRUST- new game in the town!

I have attended EGM of IRB InvIT to acquisition of New assets. On the thread @VijayJ has raised various point about valuation of assets and discount rate (WACC) applied in valuation.

While I agree with most of the comments, Still find that acquisition of HAM assets may not bad for investors in the long term. Find enclosed positive points in acquisitions:

1. Stability in cashflow: Currently all 5 assets IRB holds have uncertain cashflow, which depend on toll rate and traffic. While Toll rate is determined by WPI, tarffic is function of economy actiivities. Hence, adding an assets wtih annuity income from NHAI would significantly improve diversity in portfolio in my view.
2. Distriubtion acretive: As per EGM transcript, the management has given guidenace of additional distribution of Rs 0.50 (50 paisa) per unit from new assets in FY24. Given that toll assets portfolio reduced by 2 major road assets, addition in assets along with positive contribution to cashflow shall add confidence in IRB InvIT, if they manage to walk the talk.

On negative side, in past, the management has failed mutiple times over their past assurance. In my opinion, the Q2FY23 distribution, would be very critical for investors. In my understanding distribution of Rs 1.5/unit is normal, Rs 1.25/unit would be negative and anything above 1.5/unit may be treated positive. This is my undestanding and it may be completely wrong.

Current toll collectiion from existing assets increase my optimism for distribution. I have increased by holding by around 50% during May 2022 to August 2022 in IRB InvIT, mainly switching from India Grid InvIT investment (I have reduce India Grid holding by 27% and same being invested in IRB InvIT). The high wholesale price index and cyclical jump in road traffic are main factors which give me confidence to increase allocation in IRB. Whether my investment decision is correct or wrong, only time would confirm.

Discl: My view may be biased due to my investment. Not a SEBI registered advisor. Not offering any investment advise.