At least three InvITs are eyeing IPOs this fiscal
Retail investors comprise 9% of total shareholders in InvITs
Foreign investors eye InvITs with sustainability-linked features
Updates with TVS Infrastructure Trust quote in paragraph 6
By Dharamraj Dhutia
MUMBAI, Sept 10 (Reuters) - India's privately-listed infrastructure investment trusts (InvITs) are set to debut on stock exchanges, with at least three IPOs slated for this financial year, aiming to broaden investor participation and enhance liquidity for existing stakeholders.
InvITs are investment schemes similar to mutual funds that allow individuals and institutions to directly invest in infrastructure projects and earn a share of the income generated.
Currently, the Securities and Exchange Board of India - the markets regulator - has granted licenses to 26 domestic InvITs, of which five are publicly listed and several others are in the pipeline.
The National Highways Authority of India (NHAI) aims to raise up to 100 billion rupees ($1.13 billion) by launching a publicly-listed road InvIT within this fiscal that started on April 1, according to two sources who did not want to be named as the matter is private.
Cube Highways Trust is also targeting a 50-billion-rupee IPO, one of the sources said, while Alpha Alternatives-backed Anantam Highways Trust is seeking to raise 4 billion rupees through an IPO this month, Jignesh Shah, CEO of the trust, said.
"TVS Infrastructure Trust plans to go public, timeline will be finalised in first quarter 2026," Ravi Swaminathan, founder and vice chairman of TVS Industrial and Logistics Parks, said.
Cube Highways declined to comment, while NHAI did not respond to Reuters' queries.
"Public listing on stock exchanges offers significant benefits, particularly in expanding retail participation," said NS Venkatesh, CEO of Bharat InvITs Association (BIA).
"It provides liquidity and accessibility, enabling a wider base of investors, including small and individual investors, to participate in infrastructure growth."
Retail investors comprise only 9% of ownership in Indian InvITs, hampered by high entry thresholds, limited awareness, and perceptions that the product is complex, according to a 2025 report by Knight Frank.
In 2021, SEBI lowered the minimum subscription for publicly-listed InvITs to 10,000-15,000 rupees from 100,000 rupees, but privately placed trusts continue to maintain higher entry barriers, the report said.
While domestic retail investors remain cautious, foreign investors are dominant in the space, accounting for over 50% of institutional investments, including foreign sponsors, in these trusts, according to BIA data.
The International Finance Corporation (IFC), an early investor in Indian InvITs, holds $815 million in long-term bonds and $125 million in equity investments across InvITs and real estate investment trusts (REIT), primarily committed over the past two years.
"To date, our investments in InvITs and REITs have been made from our own balance sheet. We will support InvITs where there is a strong case for introducing new capital market instruments with sustainability-linked features," Imad N. Fakhoury, IFC's regional director for South Asia, told Reuters.
($1 = 88.1600 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia, additional reporting by Gopika Gopakumar; Editing by Sonia Cheema)
(([email protected]))
At least three InvITs are eyeing IPOs this fiscal
Retail investors comprise 9% of total shareholders in InvITs
Foreign investors eye InvITs with sustainability-linked features
Updates with TVS Infrastructure Trust quote in paragraph 6
By Dharamraj Dhutia
MUMBAI, Sept 10 (Reuters) - India's privately-listed infrastructure investment trusts (InvITs) are set to debut on stock exchanges, with at least three IPOs slated for this financial year, aiming to broaden investor participation and enhance liquidity for existing stakeholders.
InvITs are investment schemes similar to mutual funds that allow individuals and institutions to directly invest in infrastructure projects and earn a share of the income generated.
Currently, the Securities and Exchange Board of India - the markets regulator - has granted licenses to 26 domestic InvITs, of which five are publicly listed and several others are in the pipeline.
The National Highways Authority of India (NHAI) aims to raise up to 100 billion rupees ($1.13 billion) by launching a publicly-listed road InvIT within this fiscal that started on April 1, according to two sources who did not want to be named as the matter is private.
Cube Highways Trust is also targeting a 50-billion-rupee IPO, one of the sources said, while Alpha Alternatives-backed Anantam Highways Trust is seeking to raise 4 billion rupees through an IPO this month, Jignesh Shah, CEO of the trust, said.
"TVS Infrastructure Trust plans to go public, timeline will be finalised in first quarter 2026," Ravi Swaminathan, founder and vice chairman of TVS Industrial and Logistics Parks, said.
Cube Highways declined to comment, while NHAI did not respond to Reuters' queries.
"Public listing on stock exchanges offers significant benefits, particularly in expanding retail participation," said NS Venkatesh, CEO of Bharat InvITs Association (BIA).
"It provides liquidity and accessibility, enabling a wider base of investors, including small and individual investors, to participate in infrastructure growth."
Retail investors comprise only 9% of ownership in Indian InvITs, hampered by high entry thresholds, limited awareness, and perceptions that the product is complex, according to a 2025 report by Knight Frank.
In 2021, SEBI lowered the minimum subscription for publicly-listed InvITs to 10,000-15,000 rupees from 100,000 rupees, but privately placed trusts continue to maintain higher entry barriers, the report said.
While domestic retail investors remain cautious, foreign investors are dominant in the space, accounting for over 50% of institutional investments, including foreign sponsors, in these trusts, according to BIA data.
The International Finance Corporation (IFC), an early investor in Indian InvITs, holds $815 million in long-term bonds and $125 million in equity investments across InvITs and real estate investment trusts (REIT), primarily committed over the past two years.
"To date, our investments in InvITs and REITs have been made from our own balance sheet. We will support InvITs where there is a strong case for introducing new capital market instruments with sustainability-linked features," Imad N. Fakhoury, IFC's regional director for South Asia, told Reuters.
($1 = 88.1600 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia, additional reporting by Gopika Gopakumar; Editing by Sonia Cheema)
(([email protected]))
