Definition
InvIT IPO
An InvIT IPO is the public listing of an Infrastructure Investment Trust, which pools capital to own operating infrastructure assets like roads and power lines.
An Infrastructure Investment Trust holds revenue-generating infrastructure — highways, transmission lines, gas pipelines — and passes through most of its cash flows to unitholders. SEBI InvIT Regulations, like those for REITs, mandate distribution of at least 90% of net distributable cash flows.
InvITs let developers monetise completed assets and recycle capital into new projects, while giving investors stable, yield-oriented exposure to infrastructure. Both publicly listed and privately placed InvITs exist in India.
Related terms
- REIT IPOA REIT IPO is the public listing of a Real Estate Investment Trust, which pools investor money to own income-generating commercial property.
- Sponsor (InvIT/REIT)The sponsor is the entity that sets up a REIT or InvIT, contributes the initial assets and must retain a minimum unitholding for a lock-in period.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.