India’s infrastructure investment trust sector is on track to transition four to five private trusts to public listings by March 2027, boosting liquidity and broadening ownership, as industry mulls further growth opportunities amidst rising investor participation.
Four to five infrastructure investment trusts are expected to move from private structures to public listings by March 2027, according to Shivanand Venkatesh, chief executive of the Bharat InvITs Association, as the sector works to broaden ownership and deepen liquidity. Venkatesh told Business Standard the shift would support the industry by increasing visibility, improving trading in units and widening the pool of investors beyond existing institutions.
The change comes as India’s InvIT market continues to mature. There are 28 registered infrastructure investment trusts, of which nine are already listed. The first of the recent transitions was Cube Highways Trust, which shifted from a privately placed vehicle into a publicly listed InvIT. In a separate conversation with Business Standard in December, Gaurav Chandna, executive director and joint chief executive of Vertis Infrastructure Trust, said the KKR- and Ontario Teachers’ Pension Plan-backed vehicle was also considering a public offering, helped by stronger domestic participation, better liquidity and a regulatory framework that is still evolving.
Listed InvITs are drawing more unit holders, with the investor base rising from about 558,000 at the end of FY26 to roughly 653,000 in the first quarter of FY27, according to the association. The group wants that base to expand further, particularly among retail investors, including pensioners, senior citizens and professionals. Venkatesh said public listings are not only about retail demand, but also about greater disclosure, transparency and the ability to raise capital more efficiently for eligible projects.
The wider industry has a long runway for growth. It is targeting assets under management of about ₹21 trillion by FY31, up from roughly ₹7.3 trillion now, after expanding at a compound annual rate of 18%-19%. Distributions to unitholders reached ₹5,923 crore in the first quarter of FY27, up 15% from a year earlier, while cumulative payouts since the launch of InvITs have crossed ₹97,000 crore. Venkatesh said the average distribution yield is about 9%, supported by long-term contracts with government agencies, and argued that level could remain sustainable for 10 to 15 years.
Road assets are expected to remain the dominant segment as the market expands, helped by a pipeline of monetisations from the National Highways Authority of India. Roads account for about 40% of the InvIT universe, while digital infrastructure and telecom towers make up 30%-45%. Power transmission and generation represent around 10%, with warehousing and gas pipelines contributing a much smaller share.
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