Shrem Group envisions ₹15,000-cr investment in road infra

Road sector investment
The Mumbai-based Shrem Group has planned to double its asset portfolio in the road sector and has decided to invest ₹15,000 crore under its infrastructure investment trust commonly called InvIT. The government's push for rapid growth in the infrastructure sector will catalyze a massive fund flow in the Infrastructure Investment Trusts. Nitan Chhatwal, CMD of Shrem Group informed that in the next couple of years, InvITs have the potential to raise around $100 billion in fresh resources from domestic and global sources. These investors include insurance firms, mutual funds, pension funds, and sovereign funds from across the world. The Group invests across the infrastructure, real estate, telecom, healthcare, and hospitality sectors and has successfully created an operational portfolio of 24 road assets since 2017. The InvIT platform provides an opportunity for community ownership of infrastructure assets in India that will help release a considerable amount of capital locked in these assets in the form of debt from banks and other financial institutions. There is a market of close to ₹2 lakh crore of road annuity assets for Shrem InvIT to acquire completed revenue-generating projects. More than $400 billion has already been invested in equity and debt mutual funds in India over the last two decades. The InvITs, being recognized as an alternate hybrid investment vehicle to debt and equity, are going to witness much larger participation by investors.

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