InvIT AUM may grow 5-fold in 2 years: Crisil
A slew of new infrastructure investment trusts (InvIT) may hit the financial markets in the coming years after the market regulator Securities and Exchange Board of India (Sebi) changed regulations in April this year.
Sectors such as power transmission, roads, gas pipelines, telecom infrastructure and renewable energy may benefit the most from the upcoming InvITs.
Crisil, which projected that InvIT issuances to grow fivefold to over Rs 2 lakh crore in the next two years, said that the long-term offtake contracts and strong counterparties provide revenue visibility, making five sectors attractive to investors. Other infrastructure assets having similar characteristics, such as ports and airports, may also be suitable for InvITs.
