Riding the Infrastructure Wave: InvITs Set for Robust Growth in 2025 Part 2

Growth in InvITs and REITs AUM The combined AUM of InvITs and REITs in India is expected to grow by 15-20% in the next fiscal year, reaching ₹7.5-8.0 lakh crore, supported by predictable cash flows and structural safeguards. ​ (Source:Crisil Ratings) Substantial Capital Raised in FY24 In FY24, InvITs and REITs collectively raised ₹39,024 crore, marking a more than fivefold increase compared to FY23, reflecting heightened investor interest in infrastructure sectors. ​ (Source:Business Today) Top Performing InvITs IndiGrid InvIT is identified as a top pick for 2025, with power transmission and road infrastructure sectors expected to lead growth, bolstered by public sector sponsorship enhancing credibility and performance. ​ (Source:mint) Diversification of Asset Portfolios InvITs are shifting towards a more balanced mix of assets. The share of Hybrid Annuity Model (HAM) projects in InvITs' AUM is expected to increase from 7% to 20–25% by March 2025. This move aims to stabilize cash flows and reduce reliance on toll-based revenues. ​ (Source:mint) Expansion into Emerging Sectors Beyond traditional infrastructure, InvITs are exploring opportunities in sectors like green hydrogen and data centers. The National Green Hydrogen Mission and the growing demand for digital infrastructure present new avenues for investment, aligning with India's energy transition goals.