Latest news with #InfrastructureInvestmentTrusts
Indian Express
6 days ago
- Business
- Indian Express
Sebi may discuss separate PSU delisting norms, ESOPs for startup founders in board meet
The Securities and Exchange Board of India's (Sebi) board which is scheduled to meet on June 18, is likely to discuss a host of reforms, including allowing voluntary delisting of public sector undertakings (PSUs) where government holds 90 per cent or above stake and permitting founders of startups to retain employee stock options (ESOPs) post listing of their companies. The Sebi board is likely to create a separate carve out mechanism for voluntary delisting for PSU, where the government's shareholding equals to exceed 90 per cent of the total issued shares, according to market participants. Delisting of securities means the removal of securities of a listed company from a stock exchange. Delisting of a company is considered to be successful, if the post offer shareholding of the promoter or promoter group along with the shares tendered by public shareholders reaches 90 per cent of the total issued shares. In a draft paper issued in the last month, Sebi had said a few PSUs have thin public float and poor financials. Although some of these PSUs may be profitable, they might not have a future due to outdated product lines or government's decisions to sell-off their assets such as individual units. The consultation paper said that since the shares of these PSUs are held by the government, it reduces risks and offers more security for investors. This, in turn, results in a heightened market price, which in certain cases may not be commensurate with the book value of these companies. According to the draft paper, if such PSUs are to undertake delisting, being frequently traded, the 60 days' volume weighted average market price will be required to be taken into consideration, which will lead to higher floor price and consequently result in higher budgetary outlay for the government. In the meeting, the board may also consider the proposal to allow founders of new-age tech companies, or startups, planning to launch initial public offering, and who are classified as promotor or promoter group in the draft offer document, to continue to hold, exercise or avail ESOPs granted one year before the company undertakes IPO. Currently, while employees of a company are eligible for ESOP, promoters are not entitled to receive it. The Sebi board may also take up issues such as treatment of Infrastructure Investment Trusts (InvIT) and Real Estate Investment Trusts (REIT) as equity, providing flexibility to alternative investment funds (AIF) to offer co-investment opportunities to investors and to facilitate regulations for foreign portfolio investors (FPIs) investing in government bonds, market experts said.
Hans India
13-06-2025
- Business
- Hans India
Bharat InvITs Association presents India's first industry overview on the growth and performance of infrastructure investment trusts in India
InvITs India, Infrastructure Investment Trusts, Bharat InvITs Association, AUM Growth, Infrastructure Financing, SEBI Regulated Investments Mumbai, June 13, 2025 – The Bharat InvITs Association, the apex industry body for Infrastructure Investment Trusts (InvITs) in India today shared its first consolidated industry update, offering key insights into the performance, scale, and reach of Infrastructure Investment Trusts (InvITs) in India. Delivered by Mr. N. S. Venkatesh, Chief Executive Officer of the Association, the briefing marks a significant step in enhancing transparency and industry-wide understanding of InvITs as an infrastructure financing model. This update outlines how InvITs have matured into a well-regarded asset class, contributing meaningfully to India's infrastructure development efforts and attracting participation from a wide spectrum of investors. Industry Snapshot as on March 31, 2025: Growth in AUM: The total assets under management (AUM) of listed InvITs, public and private is ₹7 Lakh crore and has seen steady year-on-year growth since 2019, underscoring sustained investor interest and a strong pipeline of operational infrastructure assets. In the last five years the AUM has grown by over 1000%, with growth of 16.5% over the last year. Distributions to unitholders: InvITs distributed a total of ₹ 24,267 crore to unitholders in FY 2024–25, reaffirming their ability to generate regular, predictable cash flows for investors. Market Capitalisation: The combined market capitalisation of listed InvITs (Public and Private) reached ₹2.4 Lakh crore as of March 31, 2025, reflecting the sector's expanding footprint and investor confidence. Returns Profile: InvITs have continued to deliver stable and competitive returns, supported by regulated cash flows and long-term infrastructure assets. Unitholder Base: The total number of unitholders as on 31st March 2025 is 2.8 lakhs, representing a healthy mix of institutional, retail, and global investors. Geographical distribution: InvITs have drawn investment interest from across domestic and international markets. A total of 250+ underlying assets are spread across 21 Indian states. Sectoral coverage: The industry currently spans several key infrastructure sectors such as roads, power transmission, energy (generation & storage), telecom, warehousing, supply chain, optical fibre line, pipelines. Commenting on the industry insights, N S Venkatesh, Chief Executive Officer, Bharat InvITs Association, said: 'InvITs have emerged as a structured and transparent investment platform, well-suited to India's evolving infrastructure financing needs. They have created a distinct and credible asset class that brings long-term capital into infrastructure while offering stable returns to investors. With increasing participation from diverse investor categories and a strong regulatory oversight and support from SEBI InvITs are poised to play an integral role in supporting India's infrastructure goals.' The Bharat InvITs Association's first industry-wide update sets the stage for ongoing dialogue, transparency, and collaboration across stakeholders. As InvITs continue to evolve within India's financial ecosystem, the association remains committed to fostering growth, encouraging investor participation, and supporting the nation's infrastructure development agenda.
Business Standard
10-06-2025
- Automotive
- Business Standard
National Highways Authority of India releases first ever Asset Monetization Strategy for Road Sector
To unlock value of operational National Highway assets and increase Public Private Partnership in Indias infrastructure development, National Highways Authority of India (NHAI), has released its first ever Asset Monetization Strategy for the Road Sector. The strategy presents a structured framework that provide a robust blueprint to mobilise capital through Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation models. These instruments have helped NHAI raise over Rs 1.4 lakh crore across more than 6,100 km of National Highways under National Monetisation Pipeline. The strategy is anchored on three core pillars that include Value Maximisation of Government Road Assets, Transparency of Processes and Dissemination of investor-relevant information, and market development through deepening the investor base as well as promoting stakeholder engagement.
Business Standard
14-05-2025
- Business
- Business Standard
Dario Schiraldi's Perspective: Reshaping Indian Real Estate Portfolios with REITs and INVITs
VMPL New Delhi [India], May 14: Why institutional investors are turning to listed real estate and infrastructure trusts for liquidity, income resilience, and inflation India's real estate and infrastructure landscape undergoes a structural shift, institutional investors are rethinking how to access the sector with greater efficiency, transparency, and capital flexibility. At the forefront of this evolution are Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs)--emerging as preferred instruments for those seeking steady income, liquidity, and protection from rising inflation. "REITs and INVITs mark a fundamental redefinition of real estate exposure in institutional portfolios," says Dario Schiraldi, Deutsche Bank's former Managing Director and current CEO of VIDA Holding. "They provide structured access to income-generating assets while preserving the liquidity and transparency institutional investors require in a rapidly evolving macro environment." The Emergence of REITs and INVITs in India Overall, the traditional investment landscape in India was influenced by real estate assets and investments in assets through direct ownership, but this approach was very capital-consuming, illiquid, and very difficult to understand. REIT and INVIT structures were introduced by SEBI in 2014 and 2016, respectively and changed the direction of the investment landscape. These vehicles pool capital from multiple investors to acquire and manage revenue-generating assets such as office parks, logistics hubs, highways, and transmission lines, offering exposure to physical infrastructure in a liquid and regulated form. These instruments are gaining strong traction among pension funds, insurance firms, and family offices seeking reliable cash flows and institutional-grade governance. Why Are Institutional Investors Adopting REITs and INVITs? 1. Predictable Income and Inflation Resilience REITs and INVITs typically invest in mature, income-generating assets with long-term contracts. Whether rental income from commercial real estate or toll revenue from expressways, these flows translate into stable distributions for unit holders. As leases and usage fees often contain inflation-linked clauses, investors benefit from real income protection--critical in an environment where traditional fixed-income instruments face yield compression. "In an inflationary world, REITs and INVITs provide yield continuity while helping preserve purchasing power," Dario Schiraldi, Deutsche Bank's former leader explains. "They're not just yield enhancers--they're portfolio stabilisers." 2. Liquidity and Transparency REITs and INVITs, unlike direct property transactions, are all traded on stock exchanges and therefore can provide daily liquidity and price discovery. They are in a great position to offer both flexibility and accountability for institutions. Thanks to SEBI's regulatory oversight, you can count on the highest standards of governance, transparency, and independence when it comes to asset valuation. 3. Diversification and Scale Investing in REITs and INVITs provides broad sector and geographic exposure, due to the pooling of a wide range of assets within a single trust, which mitigates concentration risk. They present a scalable solution for investors seeking large-scale real estate allocation without direct asset management burdens. Market Performance and Momentum As of 2024, India hosts three listed REITs: Embassy Office Parks, Mindspace Business Parks, and Brookfield India Real Estate Trust. These have consistently delivered 6-8% annual yields, supported by steady office leasing demand in key metros. On the infrastructure side, INVITs like IRB INVIT and India Grid Trust have proven that user-based models--toll roads and power transmission--can generate predictable long-term cash flows. These vehicles are becoming core holdings for investors balancing long-duration liabilities or seeking alternatives to volatile equity and debt markets. Key Considerations and Risks Despite their appeal, REITs and INVITs are not risk-free. Unit prices remain susceptible to market sentiment and interest rate cycles. Asset quality, lease duration, and sponsor credibility must be carefully evaluated. Operational missteps or underperformance in underlying infrastructure projects can impair returns. "Thorough due diligence remains essential," Dario Schiraldi cautions. "Institutional investors must assess both the quality of underlying assets and the governance standards of the managing entities." A Strategic Asset Class for the Future India's rapid urbanisation, digital economy expansion, and infrastructure push--driven by programs like Gati Shakti--are setting the stage for exponential growth in tangible assets. REITs and INVITs offer an elegant solution for channelling long-term capital into these sectors while delivering liquidity, transparency, and consistent income. "The Indian real estate market is at an inflexion point," Schiraldi concludes. "Organised investment structures like REITs and INVITs empower institutional investors to participate in India's growth story without sacrificing control, diversification, or governance. This is not just an evolution--it's a redefinition of real estate investing." As India modernises its infrastructure and deepens its capital markets, REITs and INVITs are poised to play a central role in institutional portfolios. Investors seeking durable yield, regulatory clarity, and scalable access to tangible assets represent not just an opportunity, but a necessity in the next generation of portfolio strategy. (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)
Economic Times
10-05-2025
- Business
- Economic Times
Gold, debt and stocks: Why multi-asset funds are the smartest play
So, What Exactly Is a Multi-Asset Allocation Fund? Live Events Why Is This Category Becoming More Popular in 2025? 1. Equities Are Volatile, Not Cheap 2. Debt Has Stabilised, But Yields Are Capped 3. Gold Is Quietly Doing Its Job 4. The New Investing Generation Wants Simplicity How Much Do These Funds Allocate? Equity allocations in MAAFs range from just over 20% (for conservative models) to 70% or more (for aggressive growth strategies). Debt allocations vary just as much — from under 10% in some funds to over 50% in others. Gold or alternative assets (like international equity or REITs) often make up 5–20%, depending on the fund's objective. What About Tax Efficiency? Are There Risks? Manager's skill matters: In dynamically allocated funds, poor asset calls can hurt performance. The fund's success depends on how well the managers read macro signals. Asset class caps: Some funds may be constrained by internal rules or SEBI mandates, limiting flexibility. Lag in aggressive markets: In a bull run, a MAAF may underperform a 100% equity fund, simply because it's holding debt or gold for protection. What Makes a Good MAAF? Have a clear asset allocation framework (and communicate it transparently) Show a track record of navigating both bull and bear markets Include exposure to non-traditional assets (like global equities or REITs) for added diversification Deliver consistency, even if not the highest headline returns Final Thoughts: Balance is the New Alpha In 2025, Indian investors are standing at an inflexion point. Equity valuations are running high, debt yields have started to flatten, and gold is no longer just a cultural asset — it's a strategic one. In this environment, the conventional wisdom of 'just stay in equities' is being challenged. And a quiet category of mutual funds — multi-asset allocation funds (MAAFs) — is starting to are not the flashy, high-return funds that dominate social media. But for investors who care about stability, resilience, and a smoother investing experience, multi-asset allocation funds may be one of the smartest decisions in today's simply, it's a mutual fund that spreads your money across at least three different asset classes — typically equity, debt, and gold. Some mutual funds even extend their reach by providing exposure to international equities, REITs (Real Estate Investment Trusts), or InvITs (Infrastructure Investment Trusts).Think of it as a pre-assembled portfolio managed by professionals. Instead of juggling different funds for equity growth, debt stability, and gold protection, a MAAF wraps them all into one. That means fewer decisions, less panic during market dips, and a built-in diversification rise of MAAFs isn't random. It's being driven by a combination of market volatility, macro uncertainty, and maturing investor equity markets have delivered handsome returns over the past few years. But valuations have reached multi-year highs in several sectors. That doesn't mean a crash is coming, but it does suggest that the next few years might see slower, bumpier a period of rising interest rates, most debt instruments have stabilised. Yields are no longer falling, but they're not expected to rise significantly either. Debt, therefore, becomes a useful anchor — it adds predictability without dragging too much on has done what it always does in times of macro uncertainty — protect capital. With geopolitical risks, shifting interest rate policies in the West, and inflation still a concern, gold adds a meaningful hedge against sharp equity investors are not just looking for alpha (market-beating returns) — they're looking for clarity, peace of mind, and consistency. MAAFs simplify portfolio management and reduce decision fatigue, especially for those who are just starting or want to automate their investing point is: no two MAAFs are alike. Their design depends on the fund house's philosophy, the target risk level, and the market a lesser-known advantage: you don't pay capital gains tax when the fund switches between asset classes an investor manually switches between, say, a debt fund and a gold ETF, each move triggers a taxable event. However, in a Mutual Asset Allocation Fund (MAAF), the fund manages this rebalancing, which doesn't impact the investor's tax bill unless they sell the entire makes MAAFs more efficient for long-term investors who want asset allocation without tax leakage every time markets — but they're manageable and largely these are trade-offs for a smoother ride — and often, that's precisely what investors want no one-size-fits-all answer. But a solid MAAF will typically:In an era of algorithmic trades, viral stock picks, and economic headwinds, the idea of 'playing it safe' has often been dismissed as boring. But in 2025, boring looks allocation funds aren't about chasing the next 30% return. They're about reducing regret, managing risk, and staying invested without second-guessing every market turn. For long-term wealth building, that's often the difference between good plans and great funds may not make you rich overnight, but they could make you a more confident investor over time. And that might just be the smartest investment you make this author Chakravarthy V. is Cofounder & Executive Director, Prime Wealth Finserv. Views are own): Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
