Why investors must keep InvITs on their radar

As for the investment options, the more the price is high. At first, this may cause some confusion, but once you have a little, if you have another dish if it fits your taste buds. Infrastructure Investment funds (guest) are one of these new ways. SEBI has published guidelines for guests in September 2014, but the first product will hit the market in May 2017. Real estate investment funds (REIT) have yet to take off.

One is invited to a reserve of money to invest in infrastructure projects and the distribution of income to the participants. Issues a guest units are listed on the Exchange. In this regard, ETFs are invited to investment funds. The difference is that in an investment fund, the underlying shares change portfolio or bond value every day and there is a net asset value declared every day. Invi invests in projects that are identified as special purpose (SPV) that are not evaluated on a daily basis, but once in six months for public offering guests. Guests and investment funds are regulated by SEBI.

They are invited to set up as a trust and registered with SEBI. A guest consists of four entities: administrator, sponsor, investment manager and project manager. The administrator supervises the role of guest, is a registered administrator of obligations PADOTZKE and can not associate with the sponsor or administrator. “Sponsor” includes promoters and refers to any company or legal entity with a net value of Rs. 100 million rupees that configures the guest and is designated as such in the application to PADOTZKE. Promoters or sponsor, collectively, must have at least 25 percent guest for a minimum of three years. The value of assets or proposed to belong to Invit must be at least Rs 500 crore. The minimum size of the problems with the initial offer is Rs 250 crore. The invited can add projects in the same vehicle in the future, so that investors can benefit from the diversification and growth of their portfolio.

Given the difficult stage of infrastructure in the country today, guest can provide another source of funds. Several existing infrastructure projects under development in India are delayed and “stressed” due to various reasons, such as rising debt financing costs, lack of international financing flowing to India’s infrastructure projects The implementation of delays in projects caused by various factors, such as the global economic crisis, cost overruns, etc. The guest can provide a long-term source of refinancing existing infrastructure projects. Invit can help attract international funding in India’s infrastructure sector. It would also allow investors to maintain a diversified portfolio of infrastructure assets.

The first Invit India, launched by the IRB, which specializes in road assets, closed its public offering May 5, 17, and was subscribed approximately 8.5 times, ie received an enthusiastic response. India Trust grid (power transmission assets) continued. There are more pipelines: MEP infrastructure (toll), Reliance Infrastructure (toll) and IL & FS transport networks

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