Immediate past history shows that Invits have had higher yields (9-12%), in comparison to say REITs (6-8%). In the case of IRB invit, there is one of the asset that is terminating in 2027 and the talk of replacement assets is just dragging on. My guess is that the combination of things 1) tone of the management in being sure about replacement assets (intent matters, along with action)…here is where Indigrid has been more proactive than IRB 2) increasing trend of DPUs, however minor it may be – again walk the talk matters…indigrid has scored here too in comparison to IRB 3) parent group/ promoter’s action. IRB parent is on a good wicket, with many FPIs investing in it and good projects but that does not mean that the invit will get the benefits 4) this is a slow wicket…everything takes a whileeeeeeeee…for example, due to elections, the normal tariff increase that should have happened in April, moved by several months…who will pay for the lost revenue? A representation is made ot NHAI and they will take their own sweet time to decide. Sarkari moves happen in months and years and not the gati shakti they talk about…also, IRB invit too has to pay some money but that is old news…the promoters have a private invit too …all said and done, this much of a price fall non-stop is a concern…someone seems to know more than what is out in the public domain…
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