The great Invit switch: Four to five trusts expected to list by March

Even during challenging periods, Invits have continued to make distributions to investors, reflecting the resilience of the underlying assets, says N S Venkatesh, CEO, Bharat Invits Association

At least four to five privately placed infrastructure investment trusts (Invits) are expected to go public by the end of this financial year (2026-27/FY27), potentially taking the number of publicly listed Invits to 12-14, said N S Venkatesh, chief executive officer, Bharat Invits Association (BIA). 

“There will be four to five Invits going public. It will help the industry,” Venkatesh told Business Standard. There are currently 28 registered Invits, of which nine are publicly listed. The first such transition was Cube Highways Trust, which recently moved from being a privately placed and listed entity to a publicly listed Invit. 

In December last year, Gaurav Chandna, executive director and joint chief executive officer of Vertis Infrastructure Trust, an Invit backed by global investment firm KKR and Ontario Teachers’ Pension Plan, told Business Standard that the Invit was planning to shift from a privately placed structure to a publicly listed Invit, with initial discussions around an initial public offering under way.

Chandna had cited rising domestic investor participation, improving liquidity, and evolving regulatory norms in India’s infrastructure investment landscape as factors behind the move. 

While private placements will continue to have a role, the shift towards public listings is expected to widen investor participation and deepen the market. 

The move from private placement to a public listing is not aimed solely at attracting retail investors, Venkatesh said. Public listing brings greater visibility, improves liquidity as units trade more frequently, and results in greater transparency and disclosures.

This, in turn, can make it easier for Invits to raise additional resources and deploy the capital into eligible projects, creating a cycle of greater visibility, investor participation, and asset growth, he said. 

The investor base of the Invit asset class has already been expanding. The number of unit holders rose from around 558,000 at the end of 2025-26 to around 653,000 in the first quarter (April-June/Q1) of FY27, according to BIA. The association expects the base to grow further as awareness and familiarity with the asset class increase. 

The association is also seeking greater participation from retail investors, including senior citizens, pensioners, and professionals. A larger number of public issues, rather than private placements, would help expand the investor base, Venkatesh said. 

The broader Invit industry is targeting assets under management of around ₹21 trillion by 2030-31, compared with about ₹7.3 trillion currently. The industry has been growing at a compound annual growth rate of 18-19 per cent and expects this growth to continue over the next decade. 

Earlier, Invits distributed ₹5,923 crore to their unitholders in Q1FY27, up 15 per cent year-on-year. Cumulative distributions since the inception of Invits crossed ₹97,000 crore during Q1FY27. 

According to Venkatesh, the average Invit distribution yield is around 9 per cent, supported by the long-term contracts that Invits have with various government agencies, providing a strong foundation for sustainable cash flows. 

“The asset class has demonstrated relative stability, with limited volatility in distributions. Even during challenging periods, Invits have continued to make distributions to investors, reflecting the resilience of the underlying assets,” he added. 

Given these underlying fundamentals, Venkatesh believes that a distribution yield of around 9 per cent could remain sustainable over the next 10-15 years, making Invits an attractive long-term investment avenue. 

Roads are expected to remain the dominant segment as the industry expands, supported by the pipeline of assets with the National Highways Authority of India, which is expected to monetise assets to raise capital for recycling into new roads.

At present, roads account for around 40 per cent of the Invit landscape, while digital infrastructure and telecommunications towers account for 30-45 per cent. Power transmission and generation account for around 10 per cent, while warehousing and gas pipelines account for around 2-3 per cent. 

However, the sectoral mix is expected to broaden, with data centres emerging as a major opportunity. Metro rail, ropeways, logistics, airports, seaports, and inland waterways could also increasingly come within the Invit structure, Venkatesh said. 

Growing presence 

• There are 28 Sebi-registered Invits of which around nine are publicly listed
• Number of listed Invits could rise to 12-14 by FY27-end
• Number of Invit unitholders rose to 653,000 in Q1FY27 from 558,000 in FY26
• Invits distributed ₹5,923 crore in Q1FY27, up 15 per cent year-on-year