Infrastructure is one of the most dependable ways to participate in Indiaโs long-term growth story. But for most investors, the challenge is: how?
Infrastructure Investment Trusts or InvITs offer an opportunity. Like mutual funds, they pool money from investors and channel it into income-generating infrastructure projects, either directly or via Special Purpose Vehicles (SPVs). Theyโre regulated by SEBI, professionally managed and typically distribute most of their cash flows back to investors as stable income.
As someone tracking InvIT opportunities, I took a closer look at Anantam Highways Trustโs upcoming IPO (Oct 7โ9)โand hereโs what stood out:
Anantam has an initial portfolio consisting of 7 NHAI road projects across India, all operating under the Hybrid Annuity Model (HAM)โwhich ensures assured, non-toll-based revenues, independent of traffic volumes.
What makes it even more compelling is that the O&M contracts are fixed-price for the residual life of the SPVs, effectively reducing inflation-linked cost risks. This structure gives Anantam a critical edge over toll-based InvITs and even REITs, which remain exposed to market-linked volatility in rentals or asset prices.
These projects are maintained by Dilip Buildcon Ltd (DBL), an experienced road developer, under long-term, fixed-price O&M contracts that bring stability and predictability to operating costs.
Additionally, the Trust benefits from a healthy pipeline for future asset additions on account of a Right of First Offer (ROFO) from both DBL and Alpha Alternatives.
So, all in all, it looks like a good fixed-income play, with an infrastructure backbone.
What do you think: ๐๐๐ข๐๐ ๐ฆ๐๐ข ๐๐๐๐ ๐๐๐๐ ๐กโ๐๐ ๐๐ ๐๐๐๐ก ๐๐ ๐ฆ๐๐ข๐ ๐๐๐๐ ๐๐๐ฅ๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐ก๐๐๐?
Also Read: IPO wave, Sebiโs F&O moves and hidden risk
Disclaimer: This post is for information purposes only & anything mentioned herein should not be construed as a fundamental reason to buy/hold/sell any stock. Investments in securities markets are subject to market risks. Read all the related documents carefully &/or consult your advisor before investing.
