Cube Highways Trust plans ₹5,000 crore IPO, eyes broader investor base

Cube Highways Trust, which owns a portfolio of highway assets across India, had 27 operational assets spanning 8,754 lane kilometres across 12 states and one Union Territory as of March 31, 2026

Cube Highways Trust is planning to launch its ₹5,000-crore initial public offering, comprising entirely an offer-for-sale component, this month, as it looks to broaden its investor base and improve liquidity, people familiar with the matter said.

The proposed issue is structured entirely as an offer for sale (OFS), according to the draft papers.

Cube Highways Trust (Cube InvIT), which owns a portfolio of highway assets across India, had 27 operational assets spanning 8,754 lane kilometres across 12 states and one Union Territory as of March 31, 2026, with an average residual concession life of 18 years.

In a message to unitholders in the FY26 annual report, its Chief Executive Officer Vinay C Sekar said the trust's strategy remains focused on disciplined acquisitions, predictable distributions, financial prudence and operational efficiency.

 

About 85 per cent of the portfolio comprises toll road assets that benefit from traffic growth and inflation-linked toll revisions, and the remaining 15 per cent consists of annuity assets backed by contracted payments from the National Highways Authority of India (NHAI).

Cube InvIT declared a distribution per unit of ₹13.77 for FY26, taking total distributions for the year to ₹1,851 crore.

Its net debt stood at ₹17,768 crore at the end of March, while its net debt-to-enterprise value ratio was 46.82 per cent. Moreover, assets under management rose to ₹36,842 crore, supported by nine acquisitions during the fiscal year.

The trust has also signed commitment letters for four highway projects with a combined enterprise value of about ₹7,300 crore, which would expand its portfolio to 31 assets across 13 states and one Union Territory. It has also secured a right of first offer on three sponsor assets, providing an additional pipeline for future growth.