RJ Kesari News Desk: The proposed issue is aimed at broadening the investor base, improving trading liquidity, and supporting the trust's long-term growth strategy.

According to information available in the draft documents, the entire public issue is expected to be an Offer for Sale (OFS). This means that existing unitholders will sell part of their holdings, while the trust itself will not issue any new units or raise fresh capital through the IPO.

One of India's Largest Highway Infrastructure Portfolios

Cube Highways Trust owns and operates a diversified portfolio of highway assets across the country.

As of 31 March 2026, the trust managed:

• 27 operational highway projects
• Projects spread across 12 states and one Union Territory
• A total network of 8,754 lane kilometres
• An average remaining concession period of 18 years

Its diversified portfolio provides exposure to India's expanding road infrastructure sector.

What Is Cube Highways Trust's Growth Strategy?

In its FY 2025-26 annual report, CEO Vinay C. Sekar said the trust will continue to focus on disciplined acquisitions, operational efficiency, prudent financial management, and consistent cash distributions to investors.

The company aims to expand its highway portfolio while maintaining a balanced approach to debt and long-term value creation.

Balanced Mix of Toll and Annuity Assets

Cube InvIT's revenue model is supported by two different categories of highway assets.

Around 85% of its portfolio consists of toll road projects, where revenue benefits from higher traffic volumes and periodic toll revisions linked to inflation.

The remaining 15% comprises annuity-based highway assets, which generate relatively stable income through fixed payments from the National Highways Authority of India (NHAI) under long-term concession agreements.

This combination helps balance growth opportunities with predictable cash flows.

Strong Distribution to Investors

For the financial year 2025-26, Cube InvIT announced a total distribution of ₹13.77 per unit.

Overall, the trust distributed approximately ₹1,851 crore to investors during the year, reflecting its focus on delivering regular returns to unitholders.

Financial Position Remains Stable

As of the end of March 2026, the trust reported:

• Net Debt: ₹17,768 crore
• Net Debt-to-Enterprise Value Ratio: 46.82%
• Assets Under Management (AUM): ₹36,842 crore

The increase in AUM was largely driven by the acquisition of nine new highway assets during the financial year.

Expansion Plans Already Underway

Cube Highways Trust has also signed commitment letters for the acquisition of four additional highway projects with a combined enterprise value of around ₹7,300 crore.

Once these acquisitions are completed, the trust's portfolio is expected to expand to:

• 31 operational highway assets
• Presence across 13 states and one Union Territory

In addition, the trust has secured the Right of First Offer (ROFO) for three more projects from its sponsor, providing further opportunities for future growth.

What Should Investors Know Before the IPO?

The proposed IPO offers investors an opportunity to gain exposure to India's growing highway infrastructure sector through an Infrastructure Investment Trust (InvIT).

However, as with any public offering, investors should carefully review the offer document, understand the risks associated with infrastructure assets, evaluate distribution history, debt levels, and long-term growth prospects before making an investment decision.