SEBI allows Unlisted INVITs to raise funds via. Rights Issue

SEBI allows Unlisted INVITs to raise funds via. Rights Issue

INVITs are trusts, registered with SEBI, which can hold the operational infrastructure projects of sponsors with long concession periods and stable cash flows. Once registered, INVITs can raise funds via public or private placement and issue units to investors. INVITs are Investment Instruments that work like Mutual Funds. 

This great Strategic Initiative of SEBI shall open-up fund raising option and make more easy for money to be pumped in INVITs, promoting their set-up in India. This shall incentivise infrastructure players to swap their operating assets onto a platform that enables capital to be raised. This shall be akin to “Equity at the cost of debt” and can be a solution to address liquidity-related requirements in the infrastructure space.

Government has set an Investment target of ₹111 lac crores in the infrastructure space over the next five years. Demand for capital in Infrastructure shall increase, which means that the country needs more capital & investments through INVITs shall increase..