Investor Appetite Soars: Invits, Reits Raise Record Rs 17,116 Cr In FY24
Investor confidence in India's Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) has reached new heights, with a fundraising of Rs 17,116 crore witnessed in the fiscal year 2023-24.
This remarkable surge marks a staggering 14-fold increase compared to the previous fiscal year, indicating a growing appetite for these investment avenues.
Data compiled by Prime Database.com reveals that fundraising by REITs and InvITs soared from a record low of Rs 1,166 crore in the previous fiscal year to an impressive Rs 17,116 crore in 2023-24.
The fiscal year also witnessed a significant milestone with the first-ever Offer-for-Sale (OFS) by an InvIT, as Data Infrastructure Trust successfully raised Rs 2,071 crore.
Comparatively, between 2021-20 and 2019-20, funds raised through these investment routes stood at Rs 13,841 crore and Rs 33,515 crore, respectively, highlighting the substantial growth witnessed in recent years.
REITs and InvITs, although relatively new in the Indian market, have garnered global recognition for their promising returns and capital appreciation.
While a REIT typically comprises a portfolio of leased commercial real estate assets, InvITs consist of infrastructure assets such as highways and power transmission lines.
Since their introduction in 2014, these investment vehicles have experienced significant growth. The first investment trust was registered with the Securities and Exchange Board of India (Sebi) in 2016-17. Presently, there are 24 registered InvITs and 5 REITs in the Indian market, collectively boasting an asset base exceeding Rs 5.5 lakh crore.
The surge in fundraising for InvITs and REITs underscores investors' confidence in the long-term potential of these assets, particularly in India's evolving infrastructure and real estate sectors.
As the government continues to focus on infrastructure development and urbanisation, these investment avenues are poised to play a pivotal role in attracting both domestic and international capital, driving economic growth and employment opportunities across the country.
