Companies choose the private route for infrastructure investment trusts

While the private route allows for lower disclosures, industry experts add there are more significant advantages

More than two years since its introduction and with three such trusts in existence, recent corporate actions suggest that the private route is being preferred to a public listing. 

Reliance Industries’ Digital Fibre Infrastructure Trust and Tower Infrastructure Trust; Brookfield-sponsored India Infrastructure Trust, and Oriental Structural Engineers-sponsored InvIT are four similar instruments at different stages of formalisation. All three are expected to find investors through the private route. 

While the private route allows for lower disclosures, industry experts added that there were more significant advantages. “There is a definite advantage for a privately held InvIT, as the valuation is set after a