Cube Highways Trust is preparing to launch an IPO of ₹5,000 crore this month. This will be a complete Offer for Sale (OFS), through which existing investors will sell their stake and the market reach of the Trust will increase.
Business: Highway infrastructure investment trust (InvIT) Cube Highways Trust is set to launch a ₹5,000 crore IPO soon. This issue will come entirely in the form of Offer for Sale (OFS). The company’s objective after listing is to increase the scope of investors and strengthen trading in its units.
₹5,000 crore IPO will be completely OFS
Cube Highways Trust is preparing to launch an initial public offering (IPO) of about ₹5,000 crore this month. According to the draft documents, this entire issue will be Offer for Sale (OFS). This means that the company will not raise new capital through this IPO, rather existing investors will sell their stake. The company believes that after listing in the stock market, the number of investors will increase and trading in units will be better.
Strong portfolio with 27 highway assets
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-kilometres and the average remaining concession period of these projects is about 18 years. According to the company’s Chief Executive Officer (CEO) Vinay C. Sekar, the trust’s strategy will be based on disciplined acquisitions, regular distribution, financial discipline and operational efficiency.
About 85 per cent of the trust’s portfolio consists of toll road projects, whose earnings are affected by traffic growth and periodic revisions in toll rates. The remaining 15 percent of the projects are annuity based, which provide stable income as per the agreements with the National Highway Authority of India (NHAI).
Investors got better distribution
The trust has announced a distribution of ₹13.77 per unit for the financial year 2025-26. This resulted in a total payment of ₹1,851 crore to unit holders during the year. The trust’s net debt as at end-March 2026 stood at ₹17,768 crore, while the debt-to-enterprise value ratio stood at 46.82 per cent.
The Trust’s Assets Under Management (AUM) increased to ₹36,842 crore after the completion of nine new acquisitions during the year 2025-26. This is being considered a sign of strengthening the company’s expansion and investment strategy.
Highway network will expand further
Cube Highways Trust has also received commitment letters for four new highway projects with a total enterprise value of approximately ₹7,300 crore. With the addition of these projects, the Trust’s portfolio will include a total of 31 highway assets, spread across 13 states and one Union Territory.
Apart from this, the company has also obtained Right of First Offer (ROFO) on three additional projects of its sponsors. This will further strengthen the way for including new highway projects in the portfolio in future. Market experts believe that this IPO could prove to be important for the country’s Infrastructure Investment Trust (InvIT) sector, although investors should carefully assess the company’s financial performance and risks before taking any investment decision.
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