Investment Trust
InvITs Dividend
InvITs Listing Price Current Price FY 25 FY 24 FY 23
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
IRB InvIT Fund 102 61.36 2.00 2.00 2.00 2.00 8.00 2.00 2.00 2.00 2.00 8.00 2.00 2.00 2.00 2.00 8.00
India Grid Trust 100 155.61 3.75 3.75 3.75 4.10 15.35 3.45 3.55 3.55 3.55 14.10 3.30 3.30 3.30 3.30 14.10
PowerGrid Infra 100 91.73 3.00 3.00 3.00 NA 9.00 3.00 3.00 3.00 3.00 12.00 3.00 3.00 3.00 3.00 12.00
Bharat Highways 100 112.98 4.00 2.20 2.75 2.25 8.95 NA NA NA NA 3.00 NA NA NA NA 3.00

* NA - Not Announced, * NL - Not Listed

HISTORY OF INDIAN InvITs

Infrastructure Investment Trusts (InvITs) were introduced in India as an innovative financing mechanism to address the growing need for infrastructure development....

These trusts enable infrastructure developers to monetize operational assets, reduce debt, and attract long-term investments from both domestic and international markets.The concept of InvITs in India gained momentum with the Securities and Exchange Board of India (SEBI) framing regulations for their operation in 2014. These regulations provided a transparent framework covering governance, disclosure requirements, and listing norms, ensuring investor protection and aligning with global standards.

  • The first InvIT in India was launched in 2017 by IRB Infrastructure Developers, marking a significant milestone in the country's infrastructure financing journey.
  • Shortly afterward, IndiGrid InvIT, focusing on power transmission assets, was introduced.

These early InvITs were structured as publicly listed entities, allowing both retail and institutional investors to participate, thereby broadening the investor base for infrastructure projects.

Over the years, InvITs in India have evolved significantly. Initially focused on roads and power sectors, their scope has expanded to include telecom towers, gas pipelines, and renewable energy assets. SEBI further supported the sector's growth by introducing private unlisted InvITs, which cater to large institutional investors like pension funds and sovereign wealth funds, offering greater flexibility and fewer regulatory requirements. Additionally, the government’s push for asset monetization under initiatives like the National Monetization Pipeline (NMP) has provided strong momentum for the growth of InvITs.

Several key milestones have defined the development of InvITs in India:

  • In 2019, tax reforms clarified capital gains taxation and exempted dividend distributions, making InvITs more attractive to investors.
  • The COVID-19 pandemic highlighted the resilience of InvITs, with significant foreign investments pouring into this asset class during 2020 and 2021.
  • The inclusion of InvITs in SEBI's framework for mutual fund investments also enhanced their accessibility to retail investors.
  • Notably, in 2021, the launch of Tower Infrastructure Trust, India's first telecom InvIT, showcased diversification into new asset categories.

Today, InvITs have mobilized billions of dollars and play a vital role in financing India's infrastructure growth. They are poised for further expansion into sectors such as water supply, urban infrastructure, and railways. Regulatory changes, lower investment thresholds, and increased retail participation are expected to boost their adoption further. With a growing focus on ESG (Environmental, Social, and Governance) compliance, InvITs are also likely to attract sustainable investments from global funds.

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Key Regulations and Investor Information
  • 1. Eligibility:
    • InvITs must be registered with SEBI under SEBI (Infrastructure Investment Trusts) Regulations, 2014.
    • They are structured as trusts under the Indian Trusts Act, 1882.
  • 2. Sponsors:
    • Sponsors must collectively have a minimum net worth of ₹100 crores.
    • Each sponsor must hold a minimum of 5% of the InvIT's units for at least three years.
    • They should have experience in infrastructure development or fund management with completed projects.
  • 3. Investment Manager:
    • Must have a net worth of ₹10 crores (for companies) or equivalent tangible assets (for LLPs).
    • Should employ at least two key personnel with five years of experience in infrastructure or fund management.
    • Responsible for managing assets, operations, and ensuring regulatory compliance.
  • 4. Trustees:
    • Must be SEBI-registered debenture trustees.
    • Trustees operate independently to ensure adherence to regulations.
  • 1. Minimum Investment:
    • Individual investors in publicly offered InvITs must invest at least ₹10,000 to ₹15,000, depending on the issue
  • 2. Rights and Governance:
    • Investors enjoy equal voting rights on major issues, such as acquisitions or divestments of significant assets.
    • Those holding 10% or more units may nominate directors to the investment manager's board.
  • 3. Regular Returns:
    • InvITs must distribute at least 90% of their net distributable cash flow to unit holders, ensuring steady income streams.
  • 4. Transparency:
    • Quarterly updates on performance, audited financials, and asset valuation reports must be disclosed.
    • Net Asset Value (NAV) disclosure is mandatory every six months.
  • 1. Asset Allocation:
    • At least 80% of InvIT investments should be in completed, revenue-generating infrastructure projects.
    • Up to 20% can be in under-construction projects, debt of infrastructure companies, or equity of project SPVs.
  • 2. Leverage:
    • Total borrowings cannot exceed 70% of the InvIT’s total asset value if the InvIT maintains a minimum credit rating and adheres to robust disclosure norms.
  • 3. Conflict of Interest:
    • Related-party transactions must be conducted at arm’s length and require unit holders' approval.
  • 1. Tax Pass-Through:
    • Income distributed by InvITs to investors (like interest or dividends) is taxed at the investor's level, while InvITs themselves are exempt.
  • 2. Market Listing:
    • InvIT units must be listed on recognized stock exchanges, providing liquidity and enabling transparent trading.
Why Invest in InvITs?

InvITs offer a regulated and transparent mechanism for investing in India’s infrastructure growth. With mandatory distribution policies, professional management, and periodic disclosures, InvITs combine the steady returns of infrastructure assets with stock market flexibility. They provide investors access to large-scale projects like highways, power transmission networks, and renewable energy, which are typically inaccessible to retail participants.

Upcoming InvITs
Publish Date InvITs Final Offer Document filed with SEBI
Jan 14, 2025 Capital Infra Trust (Formerly National Infrastructure Trust) Click Here to View
Resource
Date Name Download Documents
MAY 2025 Consultation Paper on Regulatory Amendments for REITs and InvITs Download Document
MAY 2024 Infrastructure Investment Trust - An Overview - Grant Thornton Download
DECEMBER 2021 Introduction to Infrastructure Investment Trusts - SEBI Download
InvITs News
DATE TITLE SUMMARY LINK
2025-06-09 NHAI to come up with public InvIT to attract retail investors The National Highways Authority of India (NHAI) plans to introduce a public infrastructure investment trust (InvIT) alongside its existing private InvIT to broaden the investor base and foster competition. NHAI has identified 24 road assets, totaling 1,47 Click Here to Read
2025-03-27 For 1st time, EPFO invests in fund-raise by NHAI In the largest monetisation transaction in the roads sector through InvIT so far, the NHAI raised Rs 18,380 crore in the fourth round, which also saw the first time investment by Employees Provident Fund Organisation (EPFO). Click Here to Read
2025-03-26 NHAI's NHIT hits Rs 18,380 crore mark in record InvIT monetisation National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI), has concluded the largest round of monetisation in the highway sector at Rs 18,380 crore, the Ministry of Road Transport Click Here to Read
2024-11-16 Investment options: Can InvITs be a smart tool for long-term returns? Recently, market regulator Sebi proposed allowing Real Estate Investment Trusts (REITs), Small and Medium REITs (SM REITs), and Infrastructure Investment Trusts (InvITs) to use interest rate derivatives for hedging risk. Click Here to Read
2024-11-16 Investment options: Can InvITs be a smart tool for long-term returns Recently, market regulator Sebi proposed allowing Real Estate Investment Trusts (REITs), Small and Medium REITs (SM REITs), and Infrastructure Investment Trusts (InvITs) to use interest rate derivatives for hedging risk. Click Here to Read
2024-10-22 Outlook for InvITs in CY25 stable, says Capitalmind Research LLP; IndiGrid InvIT top pick The outlook for InvITs in 2025 is stable, driven by infrastructure development and supportive regulations, according to Capitalmind Research LLP. However, rising interest rates may hinder growth, particularly for InvITs with limited assets. Click Here to Read
2024-10-22 Outlook for InvITs in CY25 stable, says Capitalmind Research LLP; IndiGrid InvIT top pick The outlook for InvITs in 2025 is stable, driven by infrastructure development and supportive regulations, according to Capitalmind Research LLP. However, rising interest rates may hinder growth, particularly for InvITs with limited assets. Click Here to Read