Rapid Fire
Infrastructure investment trust (InvIT)
- 25 Apr 2024
- 2 min read
IndoSpace, a developer of industrial and logistics parks in India, aims to launch an infrastructure investment trust (InvIT) to raise USD 700-800 million.
- This will be the biggest InvIT in India's industrial and logistics sector. IndoSpace owns 52 industrial logistics parks in 11 cities of India.
Infrastructure Investment Trusts (InvIT):
- InvITs are instruments that work like mutual funds. They are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time. Part of this cash flow would be distributed as dividends back to investors.
- The minimum investment amount in an InvIT Initial Public Offering (IPO) is Rs 10 lakh, therefore, InvITs are suitable for high net-worth individuals, institutional and non-institutional investors.
- Similar to stocks, InvITs raise capital through IPOs and are then tradable on stock exchanges. Examples of listed InvITs include the IRB InvIT Fund and India Grid Trust.
- InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.
Read more: Infrastructure investment trust (InvIT), Securities and Exchange Board of India
