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Cube Highways Trust has secured investment commitments of INR 1,250 crore from strategic investors, including Premji Invest and HDFC Group entities, ahead of its proposed INR 5,000 crore initial public offering (IPO), which will open for subscription on July 22. The issue, comprising an offer for sale (OFS) by existing unitholders, marks the trust's transition from a privately listed to a publicly listed Infrastructure Investment Trust (InvIT). The InvIT owns a portfolio of 27 operational road assets covering 8,754 lane kilometres across 12 states and one Union Territory, with an average residual concession period of 18 years. The trust's assets under management increased to INR 36,842 crore in FY26 following nine acquisitions, reflecting continued expansion of its operational road portfolio.
Cube Highways Trust has secured strategic investment commitments worth INR 1,250 crore ahead of its proposed INR 5,000 crore initial public offering (IPO), which is scheduled to open for subscription on July 22. The public issue will close on July 24 and represents the trust's transition from a privately listed Infrastructure Investment Trust (InvIT) to a publicly listed InvIT through an offer for sale (OFS) by its existing unitholders.
According to the offer document filed with the stock exchanges, the trust entered into strategic investor unit subscription agreements on July 13 under which investors agreed to subscribe to 8.22 crore units at an allocation price of INR 152 per unit, aggregating to INR 1,250 crore, subject to the terms of the offer.
Prazim Trading and Investment Company, an entity associated with Premji Invest, has committed INR 950 crore by subscribing to 6.25 crore units, making it the largest strategic investor in the pre-IPO placement. HDFC Life Insurance Company and HDFC Pension Fund Management have each committed INR 100 crore, while Axis Max Life Insurance Ltd and WhiteOak Capital REIT & InvIT Alternatives Fund I have agreed to invest INR 50 crore each.
Cube Highways Trust is registered with the Securities and Exchange Board of India (SEBI) as an Infrastructure Investment Trust and is currently privately listed. The proposed IPO consists entirely of an offer for sale by existing unitholders, with no fresh issue of units by the trust.
As of March 31, 2026, the InvIT owned a portfolio of 27 operational road assets spanning 8,754 lane kilometres across 12 states and one Union Territory. The portfolio has an average residual concession life of approximately 18 years, providing long-term operational visibility for its toll road assets.
The trust reported assets under management (AUM) of INR 36,842 crore at the end of FY26, supported by the acquisition of nine road assets during the financial year. The expansion reflects the trust's continued strategy of strengthening its operational infrastructure portfolio through acquisitions.
Financially, Cube Highways Trust reported net debt of INR 17,768 crore as of the end of March 2026. Its net debt-to-enterprise value ratio stood at 46.82%, reflecting the capital structure of its infrastructure asset portfolio.
The IPO is expected to broaden the trust's investor base by enabling public participation in one of India's larger operational road InvIT portfolios. Infrastructure Investment Trusts have emerged as an important financing platform for operational infrastructure assets, providing developers with a mechanism to monetise completed projects while offering investors exposure to long-term income-generating infrastructure.
Kotak Mahindra Capital Company, HDFC Bank, HSBC Securities and Capital Markets (India) Pvt Ltd, and JM Financial are acting as the book-running lead managers for the issue, while KFin Technologies has been appointed as the registrar.
Source - PTI
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