Amid InvITs' IPO rush, Sebi gets reclassification report

The number of listed infrastructure investment trusts (InvITs) may go up to 10 this year from five at present, as half-a-dozen such public issues (IPOs) are in the pipeline to raise ₹25,000 crore.

- NESIL STANEY

Higher valuations, fuelled by expected high government spending, sectoral prospects and rising demand from domestic investors, are driving these IPOs, said experts.

Even as this plays out, the industry body, Bharat InvITs Association, has submitted its report on reclassification of the product as equity to Sebi, said chief executive NS Venkatesh.

Sebi has suggested to reclassify InvITs and real estate investment trusts (REITs) as equity instruments in a consultation paper in April, with an aim to enhance liquidity. In 2024, Sebi had allowed subordinate units within privately-placed InvITs with inferior rights and options to be reclassified as ordinary units after meeting thresholds.

"Globally, these (InvITs) instruments are equity. It is good to have global best practices in markets and product classifications," said the chief executive of a domestic investment bank which is preparing an InvIT to tap the IPO market.