Name: Ravishankar B
Country: India

Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: 448-456
DOI: . https://doi.org/10.5281/zenodo.22725067

Infrastructure Investment Trusts (InvITs) have emerged as a pioneering financial instrument in India, designed to channelize long-term capital into the infrastructure sector by unlocking the value of existing assets. While the regulatory framework has matured and several InvITs have been listed, their sustained financial viability remains a critical question for policymakers, sponsors, and investors. This study conducts an empirical assessment of the financial viability of listed InvITs in India. Utilizing secondary data from financial statements and stock exchanges over a five-year period (2018-2023), the research analyzes performance through key metrics including Total Unit Holder Returns, Dividend Yield, Net Distributable Cash Flow (NDCF), and Debt-to-Equity ratios. The methodology employs descriptive statistics, correlation analysis, and a one-sample t-test to evaluate performance against market benchmarks. The findings indicate that InvITs provide stable, yield-based returns that are significantly different from and less volatile than broad equity market returns. However, their viability is tempered by a significant negative correlation between leverage and dividend yield, indicating the cost of debt can erode distributable cash flows. The study concludes that InvITs present a viable, income-focused model for infrastructure financing, albeit with specific risk factors related to leverage that require diligent management.

Keywords: Infrastructure investment, Dividends, Debt-to-Equity, cash flow, investments