Street signs: IRB InvIT effect on Sterlite InvIT?

Investment bankers say many investors expecting strong listing gains

Tepid response to the listing of IRB InvIT Fund, IRB Infrastructure’s infrastructure investment trust (InvIT), seems to have had a rub-off effect on Sterlite Power's InvIT initial public offering (IPO), which closed on Friday. The issue was subscribed a little over 1.2 times. Investment bankers say many investors, especially high net worth ones, who had put money in the IRB InvIT, expecting strong listing gains, were disappointed with its flat closing. “Investors should understand that InvITs are not the same as IPOs. They are more likely to provide stable and safe yields, rather than sharp spikes," said a banker.