India’s infrastructure build-out is one of the largest investment opportunities anywhere in the world – and Infrastructure Investment Trusts (InvITs) are the bridge that connects everyday investors to this nation-building journey.
Today, 27 InvITs registered with SEBI manage over ₹7 lakh crore of assets across sectors such as power, roads, renewables, telecom towers and pipelines. By 2030, their collective assets under management are projected to more than triple to around ₹21 lakh crore, making InvITs one of the fastest-growing investment vehicles in the country.
“InvITs put India’s trillion-dollar infrastructure opportunity within reach of every investor – from global institutions to retail participants buying just one unit on the stock exchange.”
A Regulated, Transparent and Liquid Pathway
- Stock-exchange listed units (NSE & BSE) allow investors to participate with ticket sizes as small as a single unit – combining the liquidity of equities with the stability of core infrastructure cash flows.
- InvITs are required to own at least 80% income-generating assets and to distribute a minimum of 90% of Net Distributable Cash Flow (NDCF) to unitholders, typically on a semi-annual or quarterly basis.
- A 70% leverage cap and the need for AAA credit ratings ensure balance-sheet discipline and predictable cash flows.
“For investors, InvITs deliver the rare combination of fixed-income-like stability and equity-like liquidity.”
Powering India’s Next Phase of Growth
InvITs are more than just an investment product – they are a policy innovation that recycles capital back into new projects. By monetising mature, operational infrastructure, they free up developer capital to fund the next wave of national projects – transmission lines, renewable energy parks, highways and urban utilities.
This capital-churn model is central to the Government’s National Infrastructure Pipeline (NIP) and National Monetisation Plan (NMP), both of which target multi-trillion-rupee investments to realise Viksit Bharat 2047, India’s vision of a developed economy.
“InvITs are the financial flywheel of India’s infrastructure revolution – unlocking capital today so that tomorrow’s projects can be built faster.”
A New Way to Own India’s Core Infrastructure
Traditionally, investors could only tap India’s infrastructure story by buying shares of developers or subscribing to debt instruments. InvITs have changed the rules, offering fractional direct ownership of real, income-producing assets – with regular yield distributions and the ease of trading like an equity share.
“InvITs democratise infrastructure ownership – allowing every investor to literally own a slice of the nation’s power lines, roads and renewable energy assets.”
IndiGrid: Setting the Benchmark
IndiGrid Infrastructure Trust (IndiGrid) is the country’s first and largest publicly listed power-sector InvIT, sponsored by global investment firm KKR. Since listing in June 2017, IndiGrid has become a reference point for the industry:
- Assets Under Management: ~₹324 billion (~US$3.7 billion)
- Market capitalisation: ~₹14,200 crore
- Rated AAA by all major Indian rating agencies
- Portfolio footprint:
- 43 power projects across 20 states and 2 Union Territories
- 53 transmission lines spanning ~9,336 circuit-km
- 16 substations with ~25,050 MVA transformation capacity
- ~1.1 GW (DC) of solar generation capacity
- 450 MW / 900 MWh of battery energy storage capacity
Since its debut, IndiGrid has distributed ₹105.32 per unit – an aggregate of ~₹6,541 crore – to its unitholders and delivered ~174% total return, combining cash distributions with unit price appreciation.
“From power transmission to large-scale solar and cutting-edge battery energy storage, IndiGrid exemplifies how InvITs can scale India’s energy transition while rewarding investors with steady, long-term returns.”
Quote
Meghana Pandit, Chief Financial Officer, IndiGrid, said:
“InvITs are a unique investment platform that allows developers to unlock capital tied up in operational assets and redeploy it into new projects, while giving investors direct access to India’s infrastructure growth story and stable returns. With a mandate to hold at least 80% income-generating assets and distribute a minimum of 90% of net distributable cash flows, InvITs combine strong governance with predictable cash flows, making them a compelling investment avenue.”
“At IndiGrid, we have consistently demonstrated this model in action – building a diversified portfolio of power transmission, solar and battery-energy-storage assets, while maintaining AAA ratings and disciplined leverage. Since our listing in 2017, we have distributed over ₹6,500 crore to unitholders, underscoring both the resilience of our business model and the growth potential of India’s clean-energy and grid-infrastructure opportunity.”
.jpg)