Now Reading: InvIT investor base hits 6.53 lakh, distributions jump 15%
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InvIT investor base hits 6.53 lakh, distributions jump 15%
The investor base in India's Infrastructure Investment Trust (InvIT) sector rose 17 per cent sequentially to 6.53 lakh in the June quarter, while distributions to unitholders increased 15 per cent year-on-year to…
The investor base in India's Infrastructure Investment Trust (InvIT) sector rose 17 per cent sequentially to 6.53 lakh in the June quarter, while distributions to unitholders increased 15 per cent year-on-year to Rs 5,923 crore, data from the Bharat InvITs Association (BIA) showed. Cumulative distributions by the sector since inception have crossed Rs 97,000 crore.
Assets under management rose to Rs 7.3 lakh crore, up 13.7 per cent from Rs 6.42 lakh crore a year earlier. The market capitalisation stood at Rs 2.97 lakh crore. BIA CEO NS Venkatesh said the growth reflected the sector's ability to deliver consistent cash flows and that retail participation was rising. The sector comprises 28 registered business trusts spanning roads, power, telecom, pipelines, renewable energy and logistics.
Indian Opinion Analysis
InvITs were created under SEBI's 2014 regulations to let infrastructure projects raise long-term capital from the public, similar to how Real Estate Investment Trusts opened real estate to smaller investors. Unlike a mutual fund, an InvIT holds physical assets, toll roads, power lines, telecom towers, and is required to distribute at least 90% of its net cash flow to unitholders every six months. With 28 trusts now managing Rs 7.3 lakh crore, the sector has become a key conduit for recycling capital out of completed projects so promoters can fund new ones. The next milestone to watch is whether total distributions cross the Rs 1 lakh crore mark this financial year, which would signal sustained cash generation across operating assets.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
