National Highways Infra Trust (NHIT) has successfully concluded fourth round of fund-raising at an Enterprise Value of about Rs.18,380 crore, making it the largest monetization transaction in the history of Indian roads sector.
About National Highways Infra Trust (NHIT)
- National Highways Infra Trust (NHIT) is the Infrastructure Investment Trust sponsored by National Highways Authority of India (NHAI).
- It was set up in 2021 to support Government of India’s National Monetization Pipeline.
About Infrastructure Investment Trust (InvITs)
- InvITs is like a mutual fund, which enables direct investment of small amounts of money from possible individual/institutional investors in infrastructure to earn a small portion of the income as return.
- InvITs work like mutual funds or real estate investment trusts (REITs) in features.
- InvITs can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.
- Sebi notified the Sebi (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, providing for registration and regulation of InvITs in India.
- The objective of InvITs is to facilitate investment in the infrastructure sector.
- InvITs can be established as a trust and registered with Sebi.
- An InvIT consists of four elements: 1) Trustee, 2) Sponsor(s), 3) Investment Manager and 4) Project Manager.
- The units of the InvIT are listed on the National Stock Exchange.
