Top Tweets for #InvITs

Citius TransNet’s ₹1,105-crore IPO is the latest road InvIT to hit the capital market. The offer closes on April 21 and has been subscribed 69% so far. A detailed breakdown 👇 Proceeds (up to ₹1,000 crore) will be used to acquire securities and identified projects — mainly to buy or redeem sponsor-held securities in SPVs. This gives Citius an initial portfolio of 7 toll-road assets + 3 annuity-road assets. 🛣️ Sponsor Epic TransNet Infrastructure and group entities will hold at least 15% post-issue. Strongly backed by EAAA India Alternatives platform for future growth pipeline. No retail quota. Retail investors must apply in non-institutional category (min bid ~₹14,850-15,000). At ₹100 upper price band, post-issue m-cap is ~₹6,100 crore. Portfolio spans 3,406.7 lane-km, heavily tilted towards toll roads (88% of revenue). Offers traffic-linked growth but higher economic sensitivity. 📈 Forward EV/EBITDA at ~5.6x — attractive compared to peer road InvITs (6x-11x). Looks reasonably valued. 💰 Citius is better than a plain yield play, but not a high-growth compounding stock. InvITs must distribute 90% of cash flows as dividends — making them quasi-equity, quasi-debt instruments. Best suited for regular income + modest appreciation. 📊 Ideal for investors looking for steady income over 4-5 years horizon. Returns will depend on asset performance, traffic growth, refinancing costs and new acquisitions. Long-term view needed as rising rates can pressure valuations. ⏳ What Works ✅ • Strong operational history & improving EBITDA margins (72.8%) • Toll assets have built-in inflation protection (3% + WPI) • ROFO assets to diversify & extend cash flow runway • Healthy estimated FCFF yield of ~11% avg over next 5 years Factors to Consider ⚠️ • Some assets have shorter residual concession periods • Revenue concentration risk (Top 2 assets >33%, Top 5 >73%) • Major maintenance can cause periodic cash flow dips • Net debt/EBITDA ~3.7x — focus on free cash flow for actual distributions Always do your own research before investing. Source: Business Line #ipo #InVITs #equity #highway