Foreign investors have good appetite for InvITs, says India Inc

Sebi had reduced the minimum subscription limit for InvITs from Rs 10 lakh to Rs 1 lakh last month & raised the leverage limit from 49% to 70%

With private equity player KKR becoming a co-sponsor in the India Grid Trust InvIT (infrastructure investment trust) over the weekend, Reliance Jio transferring fibre and telecom assets to two InvITs, and Brookfield’s India Infrastructure Trust investing in a gas pipeline, this specialised investment vehicle is in the spotlight. 

InvITs, first allowed in 2016, are seen as good option for infra firms to hive off specified assets into a special purpose vehicle, which will get the benefits of owning the asset. External investors put money in these InvITs for steady returns. The recent interest from foreign investors augurs well for the product.

Since