NHAI’s Infrastructure Investment Trust (NHAI InvIT) has declared its financial results for the year ended March 31, 2022.
- The Project SPV, National Highways Infra Projects Private Limited (NHIPPL) had achieved Appointed Date on December 16, 2021.
- NHAI InvIT has for this period, announced a distribution of Rs.0.79 paisa per unit to its unitholders.
- NHAI InvIT had issued 59.52 crore units, accordingly Rs. 47.02 crore has been distributed to the investors.
- NHAI InvIT’s units were listed on National Stock Exchange and BSE Limited on November 2021.
- NHAI had launched its InvIT as a mode to monetise operational roads, as it has the largest share under the National Monetisation Pipeline.
What are InvITs?
- InvITs are collective investment vehicles similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return.
- InvITs enable developers of infrastructure assets to monetise their assets by pooling multiple assets under a single entity (trust structure).
- In India, InvITs are governed by SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2016.
- The key features of InvITs are mandatory distribution of 90% of net distributable cash flows to the unit investors.
- InvITS are like mutual funds in structure.
- 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 trustee, who inspects the performance of an InvIT is certified by Sebi and he cannot be an associate of the sponsor or manager.
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