Cube Highways Trust officials at a press conference

Cube Highways Trust on Wednesday fixed a price band of ₹151-152 per unit for its proposed ₹5,000-crore initial public offering (IPO), with the issue scheduled to open for subscription on July 22 and close on July 24.

The offer comprises an offer for sale (OFS) by existing unitholders as the privately listed infrastructure investment trust (InvIT) transitions to a publicly listed InvIT. The trust has already secured commitments worth ₹1,250 crore from five strategic investors ahead of the issue.

Strategic investors include Prazim Trading and Investment Company Pvt Ltd, HDFC Life Insurance Company, HDFC Pension Fund Management, Axis Max Life Insurance and WhiteOak Capital REIT & InvIT Alternatives Fund I. The issue will be managed by Kotak Mahindra Capital Company, HDFC Bank, HSBC Securities and Capital Markets (India) and JM Financial.

Addressing the press conference, Vinay C. Sekar, Chief Executive Officer of the Investment Manager, said the decision to publicly list the InvIT was driven by growing domestic investor interest in infrastructure investment trusts. “Infrastructure assets are typically less correlated to equities... investments in InvITs can behave differently from equities and therefore offer genuine diversification in growth portfolios,” he said.

The public listing would “unlock wider pools of capital” while improving liquidity and price discovery for investors, he added

The trust currently owns a portfolio of 27 highway assets, comprising 18 toll-based and nine annuity-based projects spread across 12 States and one Union Territory.

According to the management, the assets have an average operating history of more than nine years and an average residual concession life of over 18 years, providing long-term cash flow visibility. The portfolio spans about 8,750 lane kilometres with assets under management of nearly ₹36,800 crore.

Highlighting future expansion plans, Sekar said the sponsor has committed to contribute four additional assets with an enterprise value exceeding ₹7,000 crore in exchange for units of the trust.

“The sponsors have also committed to contribute four more assets... This demonstrates their continued commitment to the business,” he said. He added that the trust also has a right of first offer on three additional assets, providing visibility to expand the portfolio to 34 assets over time.

On growth drivers, the management said traffic growth, portfolio expansion and operational efficiencies would continue to support value creation. “The three key reasons for driving value have been traffic performance, addition of assets and our ability to add value through operations and maintenance... all three conditions continue to remain viable,” Sekar said.

He noted that while the trust assumes traffic growth of 4.7 per cent for valuation purposes, traffic has grown at over 7 per cent during the past three years.

Responding to concerns around traffic diversion, inflation and debt, the management said portfolio diversification across regions reduces concentration risks, while annual toll revisions linked to inflation provide a natural hedge.

“These assets are fairly stable across the inflationary cycle because the revenue itself tends to go up in those circumstances,” Sekar said. On leverage, he said the trust’s net debt-to-enterprise value stood at 46.8 per cent as of March-end, well below the regulatory ceiling of 70 per cent, adding that its AAA credit rating provides additional financial flexibility for future acquisitions.

Published on July 15, 2026