InvIT

InvIT Fulll Form: Infrastructure Investment Trust

Key Highlights

• An Infrastructure Investment Trust (InvIT) is an investment vehicle structured as a trust that gathers capital from multiple investors to deploy in revenue-generating infrastructure projects.

• The trust is registered under SEBI’s InvIT regulations and offers investors periodic distributions, as well as the potential for capital appreciation.

What is an InvIT?

An Infrastructure Investment Trust (InvIT) is an investment vehicle structured as a trust that gathers capital from multiple investors to deploy in revenue-generating infrastructure projects. The trust is registered under SEBI’s InvIT regulations and offers investors periodic distributions, as well as the potential for capital appreciation. InvIT units may be publicly listed and traded on Indian stock exchanges, promoting liquidity and transparency for investors.

Key Features

• Structured as trusts and regulated by SEBI.

• Invest in completed, revenue-generating infrastructure assets or pipeline projects.

• Investors receive income distributions from the project’s generated cash flows, typically in the form of dividends.

• Publicly listed InvITs offer liquidity via trading on stock exchanges; privately placed InvITs are for select qualified investors.

• Sponsors (infrastructure developers), trustees, investment managers, and project managers form the key participants in the InvIT structure.

Example

A toll road InvIT may acquire operational highways from a sponsor, pool investor funds, distribute toll revenue to unit holders, and list InvIT units on the stock exchange for trading.