Firms wait and watch as investors turn cautious on InvITs

Reliance Infrastructure is confident of launching its InvIT for seven road projects in this quarter

Initial performance of the country’s first two infrastructure investment trusts (InvITs) has turned investors cautious on such investments. Companies, however, are hopeful that with the current InvITs stabilising, investor confidence will return.

IRB Infrastructure and Sterlite Power are the two companies that have listed InvITs; both are currently trading below their issue price. “The performance of these two InvITs has forced other companies, which were considering tapping this market, to go into a wait-and-watch mode. We may see more issuance happening only when there is stability to the two listed ones,” said an industry expert, who did not wish to be