CORPORATE WISDOM · INVIT AND INFRASTRUCTURE

InvIT Units

In One Sentence

InvIT Units are indivisible dematerialized securities representing beneficial ownership interest in the assets and cash flows of an Infrastructure Investment Trust.

Total Units Issued = Total Equity Value ÷ Issue Price per Unit

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PRACTICAL FRAMEWORK

Executive Perspectives & Ground Reality

Literal Meaning

Securities issued by an InvIT under SEBI regulations that carry undivided beneficial interest in the trust assets, listed on recognized stock exchanges (for public InvITs) or held privately in demat form.

Plain Language

Units are the tradeable tokens of an InvIT. Just as companies issue shares, InvITs issue units. Each unit entitles you to your exact share of the toll or power transmission cash collected by the trust.

Picture It

A stock exchange terminal displays an InvIT symbol. Investors can buy 100 units or 100,000 units with one click. Trading happens continuously, giving investors real-time liquidity on infrastructure assets that normally take years to sell.

See the Numbers

An InvIT has 50 Crore units issued. When the trust announces ₹125 Crore of Net Distributable Cash Flow for Q2, it pays exactly ₹2.50 per unit. An investor with 40,000 units receives ₹1,00,000.

Ground Reality

Trading lot sizes for public InvITs have been reduced by SEBI to just 1 unit (previously 100 units or ₹10,000), making them as accessible to retail investors as common equity stocks.

Decision View

Determine the optimal unit issue pricing during book building to balance sponsor proceeds against secondary market trading health.

ASK MANISH KNOWLEDGE BRIDGE

What is an InvIT and when does it make sense for an infrastructure sponsor?

Explore practical implications, sponsor nuances and execution realities with Manish Satnaliwala.

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What InvIT Units Is Not

InvIT Units and Speculative Equity Shares

InvIT units are hybrid investment securities valued primarily for stable, long term yield and predictable cash distributions rather than sharp capital appreciation.

InvIT Units and Fixed Deposit Receipts

Units fluctuate in price on secondary stock exchanges and periodic cash payouts adjust with underlying asset operational performance.

InvIT Units and Illiquid Partnership Stakes

Listed InvIT units trade on public stock exchanges with transparent electronic clearing and settlement mechanisms.

InvIT Units and Pure Debt Debentures

Units represent equity like beneficial ownership in the trust, ranking junior to third party secured lenders during liquidation.

Questions Business Leaders Ask About InvIT Units

Are the units eligible for inclusion in domestic benchmark indices and mutual fund portfolios?

Index eligibility dramatically boosts trading liquidity and institutional participation.

NORTHAXIS ADVISORY · INVIT SPECIALISATION

InvIT Readiness, Structuring & Capital Markets Advisory

NorthAxis Advisory supports infrastructure developers, sponsors and asset owners in assessing InvIT viability, cash-flow predictability, HoldCo/SPV holding structures, valuation readiness and governance frameworks. All regulated intermediary roles are performed by registered SEBI intermediaries.

Explore InvIT Advisory Capability →Browse InvIT Knowledge Cluster →