Cube Highways Trust is preparing to launch an IPO of around Rs 5,000 crore this month. According to people with knowledge of the matter, the aim of the company is to increase the scope of investors and improve liquidity (buying and selling) in its units.
According to the draft documents, this entire IPO will be Offer for Sale (OFS). That means, through this issue the company will not issue any new shares or units, rather the existing investors will sell their stake.
Highway assets spread across the country
Cube Highways Trust (Cube InvIT) owns highway assets in different states of India. As of March 31, 2026, the Trust had 27 ongoing highway projects, spread across 12 states and 1 Union Territory. Their total length is 8,754 lane kilometers and their average remaining concession period is 18 years.
What is the company’s strategy?
In a message sent to unitholders in the annual report for the financial year 2025-26, CEO Vinay C. Sekar said that the trust’s strategy will be based on disciplined acquisition, regular distribution, financial discipline and better governance.
Mix of toll road and annuity assets
About 85% of Cube InvIT’s portfolio consists of toll road projects. This gives the benefit of revising toll rates according to increase in traffic and inflation. At the same time, the remaining 15% is of annuity assets, which generate regular income under the fixed payment system of National Highway Authority of India (NHAI).
How much return did investors get?
Cube InvIT declared a distribution of Rs 13.77 per unit for the financial year 2025-26. A total of Rs 1,851 crore was distributed to investors throughout the year.
financial position of the company
By the end of March 2026, the net debt of the trust was Rs 17,768 crore. At the same time, the net debt-to-enterprise value ratio was 46.82%. During this period, the company’s Assets Under Management (AUM) increased to Rs 36,842 crore, mainly due to 9 new acquisitions made in the financial year.
Preparation for further expansion
Cube InvIT has also signed commitment letters for 4 new highway projects with a combined enterprise value of approximately Rs 7,300 crore. After their addition, the Trust’s portfolio will increase to 31 highway assets in 13 states and 1 union territory.
Apart from this, the Trust has also acquired Right of First Offer on 3 other projects of its sponsor, which may provide more opportunities for expansion in future.
Leave a Reply