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Mint
4 days ago
- Business
- Mint
IndiGrid InvIT is offering more than 10% yield: Should you invest?
Since the start of the calendar year, the Reserve Bank of India (RBI) has cut interest rates by 100 basis points. It has led to a fall in interest rates on fixed-income products like bank fixed deposits. As a result, investors have been exploring alternatives in the search for higher returns. During the same period, the share prices of listed REITs and InvITs have rallied in the 5 to 15% range. With interest rates falling, the demand for these REITs and InvITs has gone up as they offer decent yields with the potential for capital appreciation. One such InvIT is IndiGrid Infrastructure Trust, which is offering a more than 10% yield. In this article, we will understand what InvITs are, the SEBI guidelines, how the IndiGrid InvIT has performed, and whether you should invest. In February 2025, the RBI cut the Repo Rate by 0.25% to 6.25% after holding it steady for 2 years. The RBI further cut the Repo Rate by another 0.25% in April and another 0.50% in June. So far, till August, the RBI has cut the Repo Rate by 1% or 100 basis points. As a result, banks have reduced the interest rates on their fixed deposits by around 1%. During the August 2025 MPC meeting, the RBI revised the CPI inflation projection to 3.1%, far lower than the earlier 3.7% projection in June. As the CPI inflation is expected to be lower than the target of 4%, experts expect the RBI to cut interest rates further in the coming months. The quantum and timing of interest rate cuts will depend on the incoming economic and inflation data. If and when the RBI cuts interest rates further, banks are also expected to cut the interest rates on their fixed deposits. The lower interest rates can further reduce the appeal of bank fixed deposits. In such a scenario, should you look at an InvIT like IndiGrid Infrastructure Trust (InvIT) for its high yield? Let us discuss. An Infrastructure Investment Trust is a Collective Investment Scheme (CIS), similar to a mutual fund. An InvIT pools money from investors and is SEBI-regulated. The money is invested in operational and revenue-generating infrastructure projects like highways, power transmission lines, warehouses, telecom towers, pipelines, etc. The income earned from these investments is shared with investors through regular distributions. An Investment Manager manages the trust. The InvIT can be listed or unlisted. Currently, some of the listed InvITs in India include: IndiGrid Infrastructure Trust Powergrid Infrastructure Investment Trust IRB Infrastructure Developers Limited Indus Infra Trust As per SEBI Regulations, a public InvIT must invest at least 80% of its money in completed and revenue-generating infrastructure projects. The remaining 20% money can be invested in under-construction infrastructure projects or other avenues as per SEBI Regulations. The regulations significantly reduce the execution risks that under-construction infrastructure projects may carry. The net borrowing for an InvIT is capped at 70% of its Assets Under Management (AUM). It ensures the InvIT doesn't take too much leverage. The InvIT must mandatorily distribute 90% of the net distributable cash flow (NDCF) to its unitholders. Most listed InvITs make quarterly distributions in the form of Distribution Per Unit (DPU). So, the SEBI Regulations reduce execution risks, keep leverage in check for InvITs, and ensure regular distributions to unitholders. IndiGrid is India's first and largest publicly listed InvIT. It owns, operates, and manages power transmission, renewable generation, and energy storage assets that deliver power throughout India. IndiGrid's vision and mission are to become the most admired yield vehicle in India. It is a AAA-rated company with Rs. 32,437 crores of Assets Under Management (AUM). These assets are spread across transmission lines, transformation capacity, solar generation capacity, and battery energy storage capacity. It operates across 20 States and 2 Union Territories. IndiGrid InvIT got listed in June 2017 with an issue price of Rs. 100 per share. Over the years, the company has acquired various projects in the power sector and grown its AUM. Since its listing till August 2025, the company has given a Distribution Per Unit (DPU) of Rs. 105.32/unit. So, if someone had invested in the IPO and is still holding the shares, they would have received more money in distributions than they had invested. The 5-year distribution trend of the company is as follows. Financial year (FY) Distribution per unit (DPU) FY 2022 Rs. 12.76 FY 2023 Rs. 13.35 FY 2024 Rs. 14.10 FY 2025 Rs. 15.35 FY 2026 (Company guidance) Rs. 16.00 The company makes quarterly distributions and declares them along with the quarterly financial results. For example, for Q1 FY 2025-26, the company declared a DPU of Rs. 4/unit. Since its listing, the company has given a total return of 157% (capital appreciation + DPU), resulting in annualised returns of 12%, which is decent. The IndiGrid units are listed on stock exchanges like the NSE and BSE. An individual can buy IndiGrid units through their trading and demat account just like shares of any other listed company. Suppose an individual has a Zerodha trading account. They can place a buy order from their trading account, and the units will be credited to the demat account. Similarly, when the units are sold, the units are debited from the demat account, and the sale proceeds are credited to the bank account. Over the years, the company has performed well by growing its AUM by acquiring power projects from time to time. For future projects, the company has indicated a high bidding activity in the transmission and BESS sectors. The total project value of the bid pipeline remains strong, which provides scope for the company to keep growing. For FY 2025-26, the company has guided for a DPU of Rs. 16/unit. The current price per unit is around Rs. 155. It translates into a yield of more than 10%, which is higher than what most bank fixed deposits and many other fixed income instruments currently provide. However, an investor must note that InvITs, REITs like IndiGrid, are hybrid instruments with equity and debt characteristics. The IndiGrid units trade like equity shares, wherein the unit price moves up or down depending on the company's financial performance. If the company's financial performance is good, it can result in capital gain. However, if the financial performance is not good, it can result in capital loss. Also, the DPU depends on financial performance. If the financial performance is good, the company will continue delivering the same DPU or increase it in the future. However, if the financial performance is not good, the company will have to cut the DPU. Whether one should invest in IndiGrid or other InvITs/REITs depends on the investor's investment objective, risk appetite, investment time horizon, and other factors. You must consult a good financial advisor with the requisite qualifications and experience. The financial advisor will assess your risk appetite and other factors and accordingly recommend whether you should invest. Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn. Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit. For all personal finance updates, visit here.
The Hindu
30-07-2025
- Business
- The Hindu
Council gives nod for bond to fund major eco-friendly infrastructure projects
The Greater Chennai Corporation (GCC) Council on Wednesday passed a resolution to raise ₹205.64 crore by issuing its first Green Municipal Bond to fund major environment-friendly infrastructure projects. The resolution said that the GCC issued a municipal bond — listed on the National Stock Exchange on May 22 — that raised ₹421 crore against a base size of ₹100 crore at an interest rate of 7.97% per annum. Chennai Corporation seeks Council's approval to roll out it's first-ever Green Bond, a type of funding for environmentally friendly projects. The GCC proposed this bond aiming to raise ₹205.64 crore. GCC expects to receive an additional ₹10 to ₹20 crore incentive under AMRUT… — R Aishwaryaa (@AishRavi64) July 30, 2025 The GCC said the green bond issue would follow Securities and Exchange Board of Indiaregulations. SEBI Regulations (Guidance note) requires the establishment of a Bond Issue Committee with Commissioner as chairperson. The civic body said it would provide annual impact reports to investors, detailing fund utilisation and environmental outcomes. Further, the bond would adhere to international frameworks such as the Climate Bonds Standard and Certification Scheme, and the Green Bond Principles issued by the International Capital Market Association. Since it is a 'Green Bond', the GCC is eligible to receive up to ₹20 crore as an incentive, under the AMRUT 2.0 scheme. It is also eligible for an incentive of ₹10 crore per ₹100 crore raised, subject to a maximum of ₹20 crore, under the scheme. According to the resolution, the proceeds from this bond will be used to part-fund the biomining project at Kodungaiyur dumpyard. The GCC's total contribution is ₹385.64 crore — ₹205.64 crore financed through the bond and ₹180 crore through KfW, a German Bank.
Economic Times
13-07-2025
- Business
- Economic Times
How REITs are redefining wealth creation for India's middle class
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Why it is more urgent now than ever to have tools for inclusive wealth creation Five lesser-known benefits of REITs Protection against Inflation: REIT leases have built-in rental escalations (typically 5% annually) providing a powerful hedge against inflation over time Tax efficiency: REITs are highly tax-efficient, as they avoid double taxation at the corporate level and the dividend component of the distributions is tax-free in the hands of investors. Governance: REITs are governed under strict SEBI Regulations. The governance includes independent trustees, ring-fencing assets, ceiling on debt levels, investment only in rent generating assets, distribution of 90% of income and various other regulations regarding Related Party Transactions, investments, disclosures etc, making REITs a highly secure product. SIP: REITs also allow investments through Systematic Investment Plans (SIPs) on various platforms, helping investors build wealth over time through regular contributions and the benefits of rupee-cost averaging Urbane Growth Market Investments: REITs will benefit from India's urban infrastructure boom - driven by growing demand for warehouses (fueled by e-commerce), Grade-A office spaces (led by Global Capability Centers), and retail (spurred by rising consumption) Tired of too many ads? Remove Ads India's rapid economic rise is undeniable, but the mechanisms of wealth creation have still been exclusive in nature for most and have been a domain of the privileged few. However, they are now being shaped by the growing resilience and aspirations of the middle class The creation of wealth has become a priority for both the individual and the nation. Rising disposable incomes along with better financial awareness and hunger for smarter investments are driving this transformation. While India adds nearly three people to the ultra-high net worth bracket every day, the growing middle class (expected to reach one billion by 2030) is now beginning to participate in opportunities traditionally accessed by institutional grade real estate the past, if you wanted to own a commercial property, you needed huge capital, which was available to the ultra-wealthy and others couldn't even dare think. Now, the Real Estate Investment Trust (REIT) structures are democratizing investment in commercial real estate by making it accessible to even those with modest amounts to invest and converting an exclusive wealth building asset class into an inclusive one.A REIT is a company that owns and operates income-generating real estate assets such as offices and malls, and must pay out 90% of cash flows semi-annually, and have 80% of their portfolios invested in rent generating assets. REITs allow individuals to buy units on the stock exchange, enabling them to invest in large-scale commercial real estate without having to directly own or manage middle class stands at a pivotal moment—adapting to changing market conditions, moderate salary growth, and the impact of inflation on long-term savings. While traditional instruments like fixed deposits, yielding 6–7%, continue to offer safety and stability, they may not always meet the aspirations of an increasingly financially aware and upwardly mobile ownership in real estate, though attractive, often remains out of reach of many due to high entry costs, illiquidity, and regulatory hurdles. This is where the opportunity lies, for capital and innovation to come together and open up newer, safer, more accessible and liquid investment historical terms, income-generating commercial real estate (CRE) was generally the preserve of institutional and also ultra-wealthy investors. With the introduction of REITs, India's middle class can shift from owning only homes to owning other income-generating commercial real estate assets like malls, hotels, warehouses etc. REITs have unlocked access to a once-exclusive asset class, allowing India's growing middle class to participate in the wealth-building potential of commercial real traditional fixed deposits (FDs), REITs offer a more attractive combination of higher returns, regular income through distributions, capital appreciation, and liquidity, while still maintaining a strong safety middle-class investors seeking a balance between stability and growth, REITs present an ideal entry point into modern investment options. They combine the reassurance of tangible assets with the flexibility and diversification typically associated with financial instruments, aligning well with the evolving financial goals of middle-income India moves towards becoming a $5 trillion economy, financial inclusion is critical. In this context, REITs are not just another investment vehicle, they are enablers of economic empowerment. By bridging the gap between aspiration and accessibility, REITs are redefining how India's middle class builds millions of Indians looking to move beyond FDs and fixed-income instruments, they are fast becoming the smarter, safer, and more sustainable choice for wealth REIT revolution is here and it's changing how Indian investors build wealth. – One unit at a time.(The author, Abhishek Agrawal is the Chief Financial Officer at Embassy Office Parks REIT)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
13-07-2025
- Business
- Time of India
How REITs are redefining wealth creation for India's middle class
Live Events Why it is more urgent now than ever to have tools for inclusive wealth creation Five lesser-known benefits of REITs Protection against Inflation: REIT leases have built-in rental escalations (typically 5% annually) providing a powerful hedge against inflation over time Tax efficiency: REITs are highly tax-efficient, as they avoid double taxation at the corporate level and the dividend component of the distributions is tax-free in the hands of investors. Governance: REITs are governed under strict SEBI Regulations. The governance includes independent trustees, ring-fencing assets, ceiling on debt levels, investment only in rent generating assets, distribution of 90% of income and various other regulations regarding Related Party Transactions, investments, disclosures etc, making REITs a highly secure product. SIP: REITs also allow investments through Systematic Investment Plans (SIPs) on various platforms, helping investors build wealth over time through regular contributions and the benefits of rupee-cost averaging Urbane Growth Market Investments: REITs will benefit from India's urban infrastructure boom - driven by growing demand for warehouses (fueled by e-commerce), Grade-A office spaces (led by Global Capability Centers), and retail (spurred by rising consumption) (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's rapid economic rise is undeniable, but the mechanisms of wealth creation have still been exclusive in nature for most and have been a domain of the privileged few. However, they are now being shaped by the growing resilience and aspirations of the middle class The creation of wealth has become a priority for both the individual and the nation. Rising disposable incomes along with better financial awareness and hunger for smarter investments are driving this transformation. While India adds nearly three people to the ultra-high net worth bracket every day, the growing middle class (expected to reach one billion by 2030) is now beginning to participate in opportunities traditionally accessed by institutional grade real estate the past, if you wanted to own a commercial property, you needed huge capital, which was available to the ultra-wealthy and others couldn't even dare think. Now, the Real Estate Investment Trust (REIT) structures are democratizing investment in commercial real estate by making it accessible to even those with modest amounts to invest and converting an exclusive wealth building asset class into an inclusive one.A REIT is a company that owns and operates income-generating real estate assets such as offices and malls, and must pay out 90% of cash flows semi-annually, and have 80% of their portfolios invested in rent generating assets. REITs allow individuals to buy units on the stock exchange, enabling them to invest in large-scale commercial real estate without having to directly own or manage middle class stands at a pivotal moment—adapting to changing market conditions, moderate salary growth, and the impact of inflation on long-term savings. While traditional instruments like fixed deposits, yielding 6–7%, continue to offer safety and stability, they may not always meet the aspirations of an increasingly financially aware and upwardly mobile ownership in real estate, though attractive, often remains out of reach of many due to high entry costs, illiquidity, and regulatory hurdles. This is where the opportunity lies, for capital and innovation to come together and open up newer, safer, more accessible and liquid investment historical terms, income-generating commercial real estate (CRE) was generally the preserve of institutional and also ultra-wealthy investors. With the introduction of REITs, India's middle class can shift from owning only homes to owning other income-generating commercial real estate assets like malls, hotels, warehouses etc. REITs have unlocked access to a once-exclusive asset class, allowing India's growing middle class to participate in the wealth-building potential of commercial real traditional fixed deposits (FDs), REITs offer a more attractive combination of higher returns, regular income through distributions, capital appreciation, and liquidity, while still maintaining a strong safety middle-class investors seeking a balance between stability and growth, REITs present an ideal entry point into modern investment options. They combine the reassurance of tangible assets with the flexibility and diversification typically associated with financial instruments, aligning well with the evolving financial goals of middle-income India moves towards becoming a $5 trillion economy, financial inclusion is critical. In this context, REITs are not just another investment vehicle, they are enablers of economic empowerment. By bridging the gap between aspiration and accessibility, REITs are redefining how India's middle class builds millions of Indians looking to move beyond FDs and fixed-income instruments, they are fast becoming the smarter, safer, and more sustainable choice for wealth REIT revolution is here and it's changing how Indian investors build wealth. – One unit at a time.(The author, Abhishek Agrawal is the Chief Financial Officer at Embassy Office Parks REIT)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Business Standard
11-07-2025
- Business
- Business Standard
Board of Dodla Dairy approves acquisition of HR Food Processing
At meeting held on 11 July 2025 The Board of Dodla Dairy at their meeting held today i.e. 11 July 2025 had approved acquisition of 100% issued and paid-up share capital of HR Food Processing (OSAM) (Target Company) in compliance with the provisions of the Companies Act, 2013, SEBI Regulations and other Statutory requirements may be applicable. This strategic acquisition aligns with the Company's expansion strategy and will enhance its market reach in the eastern region of India. The total purchase consideration for the acquisition of 100% of issued and paid-up share capital is Rs. 271 crore. HR Food Processing incorporated under the provisions of the Companies Act, 1956 is a manufacturer involved in sale of milk and milk products. With its premium brand ' Osam' and its milk has created a robust dairy ecosystem in Bihar and Jharkhand.
