Latest news with #IndianInfrastructureInvestmentTrusts

Business Standard

InvITs' AUM to triple to ₹21 trillion by FY30, says industry body

The value of assets under management (AUM) of Indian Infrastructure Investment Trusts (InvITs) is estimated to grow to ₹21 trillion from the current ₹7 trillion, according to the Bharat InvITs Association. N. S. Venkatesh, chief executive officer of the association, stated that the AUM growth will be led by the asset monetisation strategy of the Indian government and the upcoming projects in the infrastructure space. The association has estimated the potential InvIT pipeline from the existing infra asset base (excluding existing InvITs AUM) to be ₹2.7 trillion; the balance target monetisation pipeline in the near term from the government's total target of ₹6 trillion to be ₹2.1 trillion; and the potential InvIT pipeline from planned infrastructure spending during 2024–30 to be ₹16 trillion. 'There's a huge asset monetisation pipeline at the government level. The majority of those assets will get monetised through InvITs,' Venkatesh added. As of 31 March 2025, there are 22 listed InvITs (public and private) in India, against six as of 31 March 2020. The Bharat InvITs Association is the apex industry body for InvITs. In the last five years, AUM has grown by over 1,000 per cent, with a growth of 16.5 per cent over the last year. There are five publicly listed InvITs in India. As of 31 March 2025, they have raised ₹1.7 trillion in equity and ₹2.03 trillion in debt. InvITs distributed a total of ₹24,267 crore to unitholders in FY25. Venkatesh said 'anecdotally' that an investor can get 12–14 per cent returns on their InvIT investments. The total number of unitholders as of 31 March 2025 stood at 2.8 lakh, with a mix of institutional, retail and global investors. InvITs have drawn investment interest from across domestic and international markets. A total of 250+ underlying assets are spread across 21 Indian states. The industry currently spans infrastructure sectors such as roads, power transmission, energy (generation and storage), telecom, warehousing, supply chain, optical fibre lines and pipelines. The road sector assets account for 40 per cent of the overall industry AUM. Venkatesh said that the roads sector will continue to account for the highest share in the overall AUM because a lot of road infrastructure is coming up. 'State governments like Maharashtra and Rajasthan are also coming up with their own InvITs, which is good.' He also highlighted that road InvITs are preferring the hybrid annuity model as well as toll assets. Venkatesh said, 'Over the next 10 years, ₹30–40 trillion of projects will get monetised. There will not be any dearth of projects; we will not see any major headwinds coming in, and regulations are stable now. There is a predictable cash flow.' The executive expects the number of InvITs to grow to 'at least' 50 in the next five years.