Mumbai: Cube Highways Trust is set to launch its Rs 5,000 crore initial public offering (IPO) later this month. The proposed issue will consist entirely of an offer-for-sale (OFS), allowing existing unitholders to sell their holdings without issuing fresh units.
The infrastructure investment trust (InvIT), which owns a portfolio of operational highway assets across India, plans to tap the capital markets as it continues to expand its road infrastructure business.
IPO to be entirely an offer for sale
According to the draft offer documents, the proposed IPO has been structured entirely as an offer-for-sale.
Since there is no fresh issue component, the proceeds from the offering will go to the selling unitholders rather than the trust itself.
In a message to investors, Cube Highways Trust Chief Executive Officer Vinay C. Sekar said the trust remains committed to disciplined acquisitions, predictable distributions, financial prudence and operational efficiency.
Extensive highway portfolio across India
As of March 31, 2026, Cube Highways Trust owned 27 operational highway assets spread across 12 states and one Union Territory.
Its portfolio covers approximately 8,754 lane kilometres, with an average remaining concession period of 18 years.
The trust’s diversified portfolio makes it one of India’s largest highway-focused infrastructure investment platforms.
Majority of assets are toll roads
Around 85 per cent of Cube Highways Trust’s portfolio consists of toll road assets, which benefit from increasing traffic volumes and inflation-linked toll revisions.
The remaining 15 per cent comprises annuity-based highway assets, where payments are backed by contractual arrangements with the National Highways Authority of India (NHAI).
This mix provides a balance between traffic-linked revenue growth and stable contractual cash flows.
Financial performance and distributions
For the 2025–26 financial year, the trust declared a total distribution per unit of Rs 13.77.
Overall distributions during the year amounted to approximately Rs 1,851 crore.
At the end of March 2026, Cube Highways Trust reported:
- Assets under management (AUM): Rs 36,842 crore
- Net debt: Rs 17,768 crore
- Net debt-to-enterprise value ratio: 46.82 per cent
The growth in AUM was supported by nine acquisitions completed during the financial year.
Expansion plans continue
The trust has also signed commitment letters for four additional highway projects with a combined enterprise value of around Rs 7,300 crore.
Once these acquisitions are completed, Cube Highways Trust’s portfolio is expected to expand to 31 operational assets across 13 states and one Union Territory.
The acquisitions are aimed at strengthening the trust’s long-term infrastructure portfolio and increasing cash-generating assets.
Active IPO market
Cube Highways Trust’s public issue comes amid continued activity in India’s primary market.
Several large companies are preparing to access public markets in the coming months as investor interest in infrastructure, manufacturing and consumer businesses remains strong.
Market participants are closely watching the Cube Highways Trust IPO, given its sizeable asset base and established portfolio of operational highway projects.
Conclusion
Cube Highways Trust’s proposed Rs 5,000 crore IPO marks one of the notable infrastructure market offerings this month. With a diversified portfolio of operational highways, steady distributions and ongoing expansion through acquisitions, the InvIT is looking to strengthen its presence in India’s growing road infrastructure sector while offering investors exposure to long-term infrastructure assets.