Reaserch

As fortunes of IRB, India Grid vary, InvITs need more love for Centre’s asset-selling plan to click


Concept by Priyanka Salve and Muhabit ul haq

Synopsis

IRB InvIT is trading at a 50% discount to its IPO price, while India Grid Trust is trading at a premium of 35%. There are some structural issues that led to the divergence in performance, but one can’t ignore the varying risks in their businesses. If the government wants to use InvITs to monetise assets, the market needs to deepen.

“I was lucky to be in the right place at the right time. But many others were also in the same place…”-Bill GatesThe story of IRB InvIT and India Grid Trust somewhat mirrors what the Microsoft founder once said. Both were at the same place (almost) at the same time. But only one came out the winner. IRB InvIT and India Grid Trust were listed just two weeks apart in May 2017, but the narrative turned out to be strikingly different.Infrastructure

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