Invits

Road InvIT AUM to rise 68% to Rs 3.2 trillion by Mar 2026: CRISIL Ratings

The assets under management of infrastructure investment trusts (InvITs) in the road sector are poised to surge 68 per cent to Rs 3.2 lakh crore by March 2026 from Rs 1.9 lakh crore as of September 2024, Crisil Ratings said on Thursday. The rating agency further said the growth will be fuelled by the expansion of existing InvITs' asset pool and the emergence of new InvITs. "The AUM (assets under management) growth will be accompanied by diversification in terms of geography and concession type, which will help build resilience," Crisil Ratings said, adding that this, along with leverage levels being under control, will keep credit profiles of road InvITs strong. Infrastructure Investment Trust (InvIT) is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time. According to the rating agency, the AUM growth will also bring diversification in terms of geographies and concession types.

Sebi grants allotment exemptions for InvITs, Reits in schemes for employees

Markets regulator Sebi on Wednesday exempted InvITs and REITs from specific lock-in and allotment restrictions when issuing units to an employee benefit trust under unit-based employee benefit (UBEB) schemes. This will facilitate easier acquisition and distribution of units to employees. "In order to promote ease of doing business and to facilitate the acquisition of units by the employee benefit trust and the subsequent transfer of units to the employees as per the terms of the UBEB scheme, it is proposed that the ... lock-in and allotment related restrictions shall not apply to the employee benefit trust," Sebi said in separate circulars. Standardizing quarterly reporting format, Sebi has mandated that Bharat InvITs Association and Indian REITs Association specify a uniform format for quarterly reports and compliance certificates. These updates are to ensure that all InvITs and REITs comply with the set format, which will be publicly available on the associations' websites. Thes

Sebi reduces trading lot size of privately placed InvITs to Rs 25 lakh

Markets regulator Sebi has drastically reduced the trading lot size of privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh in a bid to boost investors' participation and increase liquidity of such investment vehicles. The current trading lot for secondary market trading for privately placed InvITs is set at Rs 1 crore. Further, if the InvIT invests at least 80 per cent of its asset value in completed and revenue-generating assets, then the trading lot is Rs 2 crore. "Trading lot for the purpose of trading of units on the designated stock exchange shall be Rs 25 lakh," Sebi said in its notification dated September 26. The move came into effect the same day. The move will help increase the liquidity of privately placed InvIT units by permitting a broader base of investors to participate in the market and boost diversification of investment portfolios. In separate notifications, Sebi has amended its rules on infrastructure investment trusts (InvITs) and real estat

Sebi amends investment rules; lays framework for employment benefit scheme

Capital markets regulator Sebi came out with a framework for a unit-based employment benefit scheme for investment trusts -- REITs and InvITs. Under the framework, Sebi has prescribed the manner of the implementation of the scheme through a trust, the manner of receiving units by the employee benefit trust and the manner of allotment of units to the employee benefit trust by REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust). In two separate notifications, Sebi said the 'unit-based employee benefit scheme' would be in the nature of the employee unit option scheme. Employee unit option scheme refers to a scheme under which the investment manager grants unit options to its employees through an employee benefit trust. The implementation of the scheme would be done through a separate Employee Benefit Trust (EB Trust) which can be created by the manager of a REIT or the investment manager of InvIT. The units held by EB Trust would be used only for the limite

Sebi invites public inputs on proposed changes to REIT, InvIT rules

Capital markets regulator Sebi on Tuesday said it has sought public views on the proposed amendments to the master circulars for REITs and InvITs. In a consultation paper, Sebi said these amendments will provide clarity on the nomination rights of directors to the boards of REIT (Real Estate Investment Trusts) and InvIT (Infrastructure Investment Trusts) managers. In the proposed amendments, the markets watchdog has addressed market participants' requests for clarification on the rights of unitholders to nominate a director to the board of the investment manager or manager of REITs and InvITs. The changes propose that the restriction on nominating a unitholder nominee director will not apply if the right to appoint a nominee director is available as per the Sebi (Debenture Trustees) regulations. Under the current norms, a unitholder holding a significant portion of units in an InvIT or REIT has the right to nominate a director, provided their unitholding exceeds a specified ...

Bring InvITs within ambit of bankruptcy law for recoveries: SBI MD

The long-term nature of assets has to be supported by long-term liabilities or there has to be take-out financing. This is starting to happen with the rise in Real Estate Investment Trusts and InvITs

Get InvITs under purview of bankruptcy law: SBI MD Ashwini Kumar Tewari

Infrastructure investment trusts (InvITs) are enjoying immunity from insolvency proceedings and should be brought under the Insolvency and Bankruptcy Code, a top official from SBI said on Friday. Ashwini Kumar Tewari, the managing director of the bank, said lenders need the assurance of being able to recover their dues from InvITs in case of a default and added that they are in touch with the Reserve Bank and the government on the same. "We need to bring these trusts, which are bankruptcy remote, within the purview of the IBC because that will go a long way in giving us the assurance that this is like any other asset," Tewari said, addressing an NBFC event organized by industry lobby Assocham here. He elaborated that at present, the primary responsibility of an InvIT or a special purpose vehicle under it is towards the trust holders and there are "gaps" which need to be filled. "This space needs clarification; this space needs assurance to the lenders that in case there is a (lega

Market regulator Sebi specifies norms on subordinate units in InvITs

These units will be issued to sponsors or associates upon acquisition of an infrastructure project. Just like mutual funds, which are pooled investments, InvITs too issue units

Sebi proposes to cut trading size of privately placed InvITs to Rs 25 lakh

Markets regulator Sebi on Thursday proposed to drastically reduce the trading lot size of privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh in a bid to boost investors' participation and increase liquidity of such investment vehicles. The current trading lot for secondary market trading for privately placed InvITs is set at Rs 1 crore. Further, if the InvIT invests at least 80 per cent of its asset value in completed and revenue-generating assets, then the trading lot is Rs 2 crore. In its consultation paper, Sebi has proposed "to reduce the trading lot size for the purpose of trading units of privately placed InvITs on designated stock exchanges from Rs 1 crore/ Rs 2 crore to Rs 25 lakh". The proposal will help in increasing the liquidity of privately placed InvIT units by allowing a broader base of investors to participate in the market and promote diversification of investment portfolios, enabling investors to better manage risk. Additionally, the regulato

REITs, InvITs mobilise Rs 1.3 trillion in past four years: RBI data

Investment vehicles for realty and infrastructure sectors -- REITs and InvITs -- have garnered Rs 1.3 lakh crore in the past four years till March-end, and are expected to facilitate more pooled funds, Reserve Bank said in a report. Experts and stakeholders are of the view that with India growing at a fast pace, REITs and InvITs are emerging as alternative investment instruments, especially for high net-worth individuals. "India has been a late adopter of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). However, the market is flourishing - REITs and InvITs have mobilised Rs 1.3 lakh crore since 2019-20 (up to March 2024)," said an article on 'State of Economy' published in the RBI's April Bulletin. March witnessed the listing of an InvIT, which raised Rs 2,500 crore through a public issue, attracting substantial interest from foreign investors. The article noted that market regulator SEBI has progressively reduced the minimum investment size and

Fundraise by InvITs, REITs surges multi-fold to Rs 17,116 cr in FY24

Investor enthusiasm towards InvITs and REITs is on the rise, with fundraising through these routes reaching Rs 17,116 crore in 2023-24, a 14-fold year-on-year surge fuelled by the prospect of stable returns. Going ahead, the outlook for infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) in terms of fundraising for the current fiscal FY25 is very optimistic, industry experts said. "After Sebi's amendments to the SM (small and medium) REITs regulations last month, we are poised for a transformative shift. The Indian fractional ownership market, set to evolve into SM REITs, is projected to grow from USD 500 million to over USD 5 billion in AUM by 2030, indicating a significant expansion and bright prospects for SM REITs," WiseX CEO Aryaman Vir said. Moreover, the road sector is likely to be a major beneficiary, likely attracting 75 per cent of the new inflows, thanks to a robust pipeline of assets ready for monetisation and a strong pace of infrastructu

Bharat Highways InvIT collects Rs 826 cr from anchor investors ahead of IPO

Bharat Highways InvIT, an infrastructure investment trust, on Tuesday said it has collected Rs 826 crore from anchor investors a day before its Initial Public Offering (IPO). The InvIT has allotted 8.26 crore units to 37 funds at Rs 100 apiece, aggregating the transaction size to Rs 826 crore, according to a circular uploaded on the BSE website. Copthall Mauritius Investment Ltd, Societe Generale, ICICI Prudential Mutual Fund, HDFC Mutual Fund, UTI Mutual Fund, Axis Mutual Fund, Reliance General Insurance Company, and Max Life Insurance Co Ltd are among the anchor investors, it showed. The Rs 2,500-crore maiden public issue of Bharat Highways will open for subscription on February 28 and conclude on March 1. The price band has been fixed at Rs 98-100 per unit. Proceeds from the issue will be utilised to provide loans to the project SPVs (Special Purpose Vehicles) for repayment of their outstanding loans. Bharat Highways InvIT is an infrastructure investment trust established to ..

Sebi tweaks pricing method for institutional placement by private InvITs

Capital markets regulator Sebi on Thursday came out with revised pricing guidelines for institutional placements by privately placed infrastructure investment trusts (InvITs) in a bid to promote ease of doing business. Under the new guidelines, privately placed InvITs can undertake institutional placement based on net asset value (NAV) of InvIT's assets. "The institutional placement by privately placed InvIT shall be made at a price not less than the NAV per unit, based on the full valuation of all existing InvIT assets conducted in terms of InvIT Regulations," the Securities and Exchange Board of India (Sebi) said in a circular. As per the current rule, the institutional placement by InvIT needs to be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date. The decision has been taken based on the request of the industry in respect of pric

Mahindra, Ontario Teachers' co-sponsor InvIT in renewable energy sector

Mahindra Group and global institutional investor Ontario Teachers' Pension Plan Board have co-sponsored an infrastructure investment trust (InvIT) holding assets of 1.54 GW in the renewable energy space in India. The InvIT, Sustainable Energy Infra Trust (SEIT), is India's largest InvIT in the renewable energy space and has raised primary capital of Rs 1,365 crore as part of the initial offer of units (offer), Mahindra Group said in a statement. Several global and Indian investors, including Asian Infrastructure Investment Bank (AIIB), subscribed to the offer. SEIT made its debut on the National Stock Exchange on Monday. SEIT has been set up to focus on the growth of the renewable energy sector in India at scale. It holds operational renewable power assets seeded by Mahindra Susten with a generation capacity of approximately 1.54 GWp. The capital of Rs 897.8 crore made available to Mahindra Susten by way of an offer for sale of units of SEIT will help Mahindra Susten develop a fut

REITs, InvITs see growth; fund mobilisation rises to Rs 11,474 cr in 2023

REITs and InvITs have gained popularity as preferred investment options, with fundraising, through the route, surging 10-fold year-on-year to Rs 11,474 crore in 2023, supported by measures taken by regulator Sebi and attractive returns offered by the instruments. Going ahead, fund mobilisation by REITs (real estate investment trusts) and InvITs (infrastructure investment trusts) is poised for significant growth in 2024, driven by several key factors, including anticipation of rate cuts and introduction of a range of policies aimed at encouraging investments like tax incentives and relaxed investment norms, Claravest Technologies co-founder Manaki Parulekar said. "This year, we are likely to see interest rates decrease in the first half of 2024 due to the expected drop in inflation. These conditions are favourable for investors who are looking to invest in long-term opportunities, such as REITs and InvITs," he added. According to data compiled by Prime Database.com, REITs and InvITs

Sebi lays down framework for calculation of Net Distributable Cash Flows

To promote ease of doing business, capital markets regulator Sebi on Wednesday decided to standardise the framework for calculation of available net distributable cash flows by REITs, InvITs and their respective holding companies. The new framework will be applicable from April 1, 2024, the Securities and Exchange Board of India (Sebi) said in two separate circulars. Under the rules, the Net Distributable Cash Flow (NDCF) is computed at the level of real estate investment trusts (REITs), and infrastructure investment trusts (InvITs) and their holding companies (HoldCo) or special purpose vehicles (SPVs). Further, the minimum distribution should be 90 per cent of the NDFC at the Trust level as well as the HoldCo/SPV level. This is subject to applicable provisions in the Companies Act or the Limited Liability Partnership Act. Sebi said that the option to retain 10 per cent distribution needs to be computed by taking together the retention done at SPV level and Trust level. "Further,

Sebi eases access to unclaimed funds in REITs, InvITs, debt securities

Capital markets regulator Sebi on Wednesday came out with detailed procedures for dealing with unclaimed funds of investors lying with entities having listed non-convertible securities, REITs and InvITs. Also, the regulator has put in place a manner of claiming such unclaimed amounts by investors. The new framework will come into effect from March 1, 2024, the Securities and Exchange Board of India (Sebi) said in three separate circulars. The move is aimed at prescribing a uniform process of claim for such unclaimed funds in a streamlined manner for the ease and convenience of investors. This came after the board of Sebi in September approved amendments to rules about the IPEF (Investor Protection and Education Fund) disclosure, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs). Going by circulars, Sebi has defined the manner of handling the unclaimed amounts lying with REITs, InvITs, and in the escrow accounts of the listed entities (which are n

REITs, InvITs collect Rs 18,658 cr in Apr-Sep on robust infra demand

Strong demand for infrastructure investment, attractive returns, and favourable government policies have pushed fund mobilization through listed REITs and InvITs to Rs 18,658 crore in the April-September period of the current fiscal. This came following a fund collection of Rs 2,596 crore through listed Infrastructure Investment Trusts (InvITs) in the entire 2022-23, although the amount mopped up through listed Real Estate Investment Trusts (REITs) was nil, data with the Securities and Exchange Board of India (Sebi) showed. Going forward, experts believe that trends seen in REITs and InvITs will continue in the second half of the year too. "The fresh savings will continue similarly as has happened in the last six months, and the investments will continue to be towards InvITs as both the central government and the state governments continue to focus more on infrastructure development," Himanshu Kohli, Co-founder of Client Associates, said. Hence, the trends you have seen in REITs an

Sebi provides option for InVITs to meet public unitholding requirement

Markets regulator Sebi on Tuesday said privately placed Infrastructure Investment Trusts (InvITs) will be allowed to issue units through the preferential allotment route to achieve the minimum public unitholding requirement. In a circular, Sebi said it is providing an additional method for privately placed InvITs to achieve the minimum public unitholding requirement. Now, these entities can issue units through the preferential allotment route in this regard. This will be subject to the condition that "only units issued to the public shall be considered for compliance with minimum unitholding requirement," the circular said. Besides, certain changes have been made to the master circular, issued in July this year, with respect to InvITs.

Reliance Industries transfers Rs 5,150 cr to warehouse InvIT fund

Reliance Industries Ltd (RIL) has transferred Rs 5,150 crore earlier this week to its warehouse InvIT infrastructure investment trust (InvIT) entity. "Reliance Retail completed the transfer of assets to warehouse InvIT entity for a total consideration of Rs 5,150 crore on 25th October 2023," said the earning statement from Reliance Retail on Friday. The asset value is now reflected in the 'Other Financial Assets' segment, as of September 30, 2023, it added. RIL has set up an InvIT, under which the group can monetise the backend warehousing and logistics assets of its retail business. Reliance Retail, which operates the retail business of the billionaire Mukesh Ambani-led Reliance Industries, registered the trust with the market regulator Securities and Exchange Board of India (Sebi) in February this year. The funds raised by the InvIT will be used for the acquisition of warehousing and logistics-related assets through a special-purpose vehicle. Reliance Retail, which is aggressiv