The current InvIT structure of IRB own 4 BOT and 1 HAM assets. So in case there is no futher asset additions, the trust would continue to distribute NCDF to unitholder. In case NCDF cashflow discounted value are higher than current market cap of unitholders, then unit holder would receive excess amount over NAV as dividend. In case the discounted value of cashflow is lower than current mark cap (due to lower traffic, frequent issue of farmer protest etc), and tenue of asset get over, the investor would have to write down undistributed capital outstanding at end of last assets and book loss. However, while there may be accounting loss, the likely loss of capital appear low probability to me.
Since listing in May 2017 to November 2024(including Sep24 quarterly distributon with declared but not disbursed), IRB has distributed Rs 68.35 per unit as distribution. Of these, nearly 71% portion came as interest distribution (Rs 48.35 per unit in agggregate), 28% portion came Capital redemption (Rs 18.88 per unit in aggregate) and 2% (Rs 1.12 pre unit in aggregate) distributed as Dividend. So, signficant portfion of cashflow are distributed as Non-capital redemption in form of Interest/Dividend and hence I see limited probabilty of cashflow based loss on investment.
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