Cube Highways Trust IPO: Big IPO of Rs 5000 crore soon, know why this opportunity is special for investors

Business Desk: Another big issue is set to come in the Indian IPO market this month. Cube Highways Trust, which operates a large network of highway assets across the country, is preparing to launch an IPO worth about Rs 5,000 crore.

This entire issue will come through Offer for Sale (OFS), that is, the company will not issue new units, but existing investors will sell their stake. This IPO is being considered special amid the increasing interest of investors in the infrastructure sector. The objective of the Trust is to increase the scope of investors, strengthen the liquidity of the units and widen its presence in the market.

IPO will be completely OFS

According to sources, this IPO of around Rs 5,000 crore will be completely Offer for Sale (OFS). That means the company will not get new funds from this issue, rather the existing unitholders will sell their stake. This will increase the availability of units in the market and make trading easier for investors.

Highway network spread across 12 states and one union territory

According to the draft documents, as of March 31, 2026, Cube Highways Trust had 27 operational highway assets spread across 12 states and one union territory. Their total length is 8,754 lane kilometers. The average remaining concession period of the Trust’s portfolio is approximately 18 years, providing the potential for long-term stable cash flows.

CEO told future strategy

In the annual report for the financial year 2025-26, Trust Chief Executive Officer Vinay C. Sekar said that the company will continue to focus on disciplined acquisitions, regular distributions, financial discipline and operational efficiency. According to him, this strategy will be the foundation of the long-term development journey of the Trust.

85% portfolio based on toll roads

Toll road assets constitute approximately 85% of Cube Highways Trust’s portfolio. These projects benefit from revisions in toll rates as per traffic increase and inflation. The remaining 15% of the assets are based on annuity model, in which fixed payments are received from the National Highways Authority of India (NHAI). This gives the Trust two separate and relatively stable sources of income.

Unitholders received distribution of Rs 1,851 crore in FY26

The trust announced a distribution of Rs 13.77 per unit for the financial year 2025-26. A total of Rs 1,851 crore was distributed to unitholders in the entire financial year. This reflects the strong delivery capability of the Trust.

Strong growth in AUM and assets

The trust’s net debt as at end-March 2026 stood at Rs 17,768 crore, while the net debt-to-enterprise value ratio was recorded at 46.82%. Nine new acquisitions were made during FY 2025-26, following which the Trust’s Assets Under Management (AUM) increased to Rs 36,842 crore.

Highway portfolio will increase further

Cube Highways Trust has signed commitment letters for 4 new highway projects with a combined enterprise value of approximately Rs 7,300 crore. With the addition of these projects, the Trust’s portfolio will increase to 31 highway assets spread across 13 states and one Union Territory. Apart from this, the Trust has also received Right of First Offer (ROFO) on 3 other assets of its sponsor, which can further strengthen the possibilities of expansion in future.

Why is this IPO important for investors?

This IPO is considered important for investors looking for long-term investments in the infrastructure sector. The Trust has assets like long concession period highway assets, regular income from toll and annuity model, ever-growing portfolio and regular distributions to unitholders, which are making it the talk of the town.

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