InvIT — Infrastructure Investment Trusts
InvITs own operating infrastructure (roads, transmission lines, fiber) and distribute most cashflows to unit‑holders. Think of them as REIT‑like, but for infra.
They’re suited to investors seeking relatively predictable distributions with lower growth than equities but higher income than many debt options.
Focus on sponsors, leverage, and distribution sustainability. Prices respond to interest rates, regulation, and asset performance.
Yield focusOperating infraListed units
Ways to Invest
- Listed InvITs: Buy/sell on exchanges like equity; check yield history, asset maturity, and capex needs.
- Institutional/Private InvITs: Higher tickets; detailed diligence; liquidity is limited.
- IPOs/Follow‑ons: Participate during issuance; review valuation, debt terms, and sponsor track record.
What to Evaluate
- Asset quality & concession tenor; demand vs availability risks.
- Debt metrics (Net debt/EBITDA), interest coverage, hedging.
- Distribution sustainability & policy; growth pipeline & ROFO rights.
- Regulatory/tariff frameworks; counterparty risk (DISCOM/NHAI/corporates).
Taxation & Liquidity
| Aspect | Details |
|---|---|
| Distributions | Mix of dividend (often tax‑free depending on SPV), interest (taxable), repayment of capital. |
| Capital Gains | Listed InvITs generally follow equity‑like CG rules; verify current slabs. |
| Liquidity | Listed units: generally liquid; private InvITs: illiquid. |
Real InvIT Examples (India)
Representative infrastructure investment trusts by asset class
Listed InvITs (NSE/BSE)
| InvIT | Asset Class | Sponsor / Notes |
|---|---|---|
| IndiGrid InvIT | Power Transmission | Sterlite Power (original sponsor); diversified interstate lines & substations |
| PowerGrid Infrastructure Investment Trust (PGInvIT) | Power Transmission | Sponsored by Power Grid Corporation of India |
| IRB InvIT | Toll Roads / Highways | Sponsored by IRB Infrastructure Developers |
| National Highways Infra Trust (NHAI InvIT) | Toll Roads / Highways | Sponsored by NHAI; portfolio of toll road concessions |
Privately Placed / Unlisted InvITs (examples)
| InvIT | Asset Class | Sponsor / Notes |
|---|---|---|
| IndInfravit Trust | Toll Roads | Originally from L&T IDPL portfolio; holds multiple road assets |
| India Infrastructure Trust | Energy Pipelines | Owns the East-West Pipeline; Brookfield-managed |
| Tower Infrastructure Trust | Telecom Towers | Portfolio associated with large nationwide tower assets |
| Digital Fibre Infrastructure Trust | Optical Fibre Network | Holds extensive last-mile & backbone fibre assets |
| Virescent Renewable Energy Trust (VRET) | Renewable (Solar) | Renewable energy portfolio; institutionally placed |
Education only; not investment advice. Markets carry risk; do independent due diligence.