Roads Infrastructure Trust has applied to SEBI to seek approval to launch its infrastructure investment trust (InvIT). The company is in the business of toll road construction.
Currently, two other companies - India Clean Energy Trust and Shrem Infraventure are waiting for the regulator’s nod to issue their units. While India Clean Energy Trust invests in renewable energy businesses, Shrem Infraventure is in construction business.
An InvIT is like a mutual fund that pools funds from many institutional investors for investing in infrastructure projects such as roads, telecommunication towers or power plants to earn regular returns.
Till now, Indian InvIT industry has had 10 InvITs - Digital Fibre Infrastructure Trust, India Grid Trust, India Infrastructure Trust, Indian Highway Concessions Trust, IndInfravit Trust, IRB Infrastructure Developers, IRB InvIT Fund, MEP Infrastructure, Oriental InfraTrust and Tower Infrastructure Trust.
Generally, institutional investors like mutual funds and HNIs invest in units of InvITs as the minimum ticket size is Rs.10 lakh.
