Road InvIT AUM to rise 68% to US$ 37.62 billion (Rs. 3,20,000 crore) by March 2026: CRISIL Ratings
- IBEF
- December 20, 2024
The assets under management (AUM) of Infrastructure Investment Trusts (InvITs) in the road sector are projected to grow by 68% to US$ 37.62 billion (Rs. 3,20,000 crore) by March 2026, up from US$ 22.34 billion (Rs. 1,90,000 crore) in September 2024, according to Crisil Ratings. This growth will be driven by the expansion of the asset pool of existing InvITs, along with the emergence of new InvITs. Crisil highlighted that this increase in AUM will be accompanied by greater geographical and concession-type diversification, enhancing the resilience of these investment trusts. Moreover, controlled leverage levels are expected to support the strong credit profiles of road InvITs.
Crisil Ratings also noted that the AUM growth will bring more varied asset pools, with toll projects offering growth prospects and Hybrid Annuity Model (HAM) projects ensuring cash flow stability. The average leverage of road InvITs is anticipated to remain under 49% by March 2026, ensuring that credit profiles remain robust. The diversification strategy and effective leverage management position road InvITs for sustainable growth in the coming years.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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