Brokerage firms divided on impact of RIL's liability transfer to InvIT

The Street is also divided on how one has accounted for the new InvIT structure in RIL's consolidated numbers

Earlier this month, conglomerate Reliance Industries (RIL) announced transfer of its telecom tower and optic fibre assets to separate investment trusts, with some of its liabilities. 

Brokerage firms seem divided and uncertain on the impact of this on the company.

In addition to the trust model, these firms largely lack consensus on future capital expenditure, maritime guidelines’ impact and how one accounts for the trust-related debt. “The InviT (infrastructure investment trust) has effectively allowed RIL to replace Rs 71,000 crore of external debt with 20-year money, thereby removing any refinancing need on this amount of debt,” analysts with JP Morgan wrote in