India’s largest privately listed road InvIT converts to a public trust with a Rs 5,000 crore offer-for-sale
Cube Highways Trust, an infrastructure investment trust sponsored by Cube Highways and Infrastructure V Pte. Ltd., opens for subscription on July 22 with the issue closing on July 24. The trust is transitioning from a privately listed InvIT — where it has been listed on BSE and NSE since April 2023 — to a full public InvIT, enabling broader investor participation.
This being a pure Offer for Sale, no proceeds go to the trust — the issue provides an exit to some existing unitholders and unlocks listing benefits for public market access.
Unlike a regular IPO, this is an InvIT — a structure designed to hold income-generating infrastructure assets and distribute the majority of cash flows to unitholders on a regular basis.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 22, 2026 |
| Issue Closes | July 24, 2026 |
| Price Band | Rs 151 – Rs 152 per unit |
| Face Value | Rs 100 per unit |
| Issue Size | Rs 5,000 crore (entirely OFS) |
| Total Units (at upper cap) | ~32,89,47,368 units |
| Minimum Application | 95 units and multiples thereof |
| Minimum Investment | Rs 14,440 at upper band |
| Post-IPO Enterprise Value | ~Rs 20,428.86 crore (for 1,34,40,67,762 units) |
| NAV per Unit (March 31, 2026) | Rs 145.77 |
| Listing | BSE and NSE |
| Sponsor | Cube Highways and Infrastructure V Pte. Ltd. |
| Investment Manager | Cube Highways Fund Advisors Pvt. Ltd. |
| Trustee | Axis Trustee Services Ltd. |
| BRLMs | Kotak Mahindra Capital, HDFC Bank, HSBC Securities, JM Financial |
| Registrar | KFin Technologies Ltd. |
What the Trust Holds
As of March 31, 2026, Cube Highways Trust operates 27 road assets aggregating 8,754 lane kilometres and 2,005 kilometres in distance, spread across 12 states and one union territory. The portfolio has a weighted average residual concession period of 18.0 years and an operating history of 9.2 years — reflecting a mature, revenue-generating asset base. Enterprise Value and AUM aggregate to Rs 36,841.76 crore, with AUM growing at a CAGR of 19.47% since March 31, 2024.
The portfolio is predominantly toll-based, with a Toll to Annuity AUM ratio of 85:15. Toll assets provide inflation-linked upside through periodic toll rate revisions, while the annuity component provides predictable, authority-backed cash flows. Since listing as a private InvIT in April 2023, NAV per unit has grown 45.77% — a CAGR of 13.62% — reflecting both portfolio performance and strategic acquisitions.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 3,074.11 | 3,453.15 | 4,359.03 |
| Net Distributable Cash Flow (NDCF) | 1,076.18 | 1,082.38 | 1,625.65 |
Total income has grown consistently and distributable cash flows jumped sharply in FY26, supporting higher income distributions. The NDCF is the metric most relevant for InvIT unitholders as it reflects actual cash available for distribution.
Distribution History
| Period | Distribution per Unit (Rs) |
|---|---|
| FY24 | 10.09 |
| FY25 | 11.00 |
| FY26 | 13.77 |
Income distributions have grown steadily and the trust has indicated intent to improve distributions further as acquisitions add to AUM. As mandated under SEBI’s InvIT regulations, at least 90% of net distributable cash flows must be distributed to unitholders.
Valuation and Peer Comparison
The issue is priced at Rs 151–152 per unit against a NAV of Rs 145.77 as of March 31, 2026, implying a premium of around 3.6–4.3% to NAV. Among listed road InvIT peers:
| Trust | NAV per Unit (Rs) | Market vs NAV |
|---|---|---|
| IRB Infra InvIT | 319.73 | Discount |
| National Highways Infra Trust | 150.50 | Premium |
| Vertis Infra Trust | 106.80 | Premium |
| Interise Trust | 117.50 | Discount |
| Shrem InvIT | 88.12 | Discount |
| Oriental Infra Trust | 111.24 | Discount |
| Cube Highways Trust | 145.77 | ~4% premium at issue price |
Among peers, only National Highways Infra Trust and Vertis Infra Trust are trading at a premium to NAV, with most others at a discount. Cube enters at a modest premium, which appears reasonable given its scale, portfolio quality, and distribution track record. Unitholders who bought in at the private listing low of Rs 100 per unit (May 2024) have seen meaningful appreciation to the issue price of Rs 152.
Says SMIFS: “We view Cube as a resilient, growing, well-capitalised road-infrastructure income vehicle suited to investors seeking a combination of predictable cash distributions and a visible acquisition-led NAV growth pipeline — committed assets and ROFO assets aggregating a further approximately Rs 73 billion of AUM.”
Risks to Consider
The trust operates entirely in road infrastructure and is dependent on traffic volumes, which can be impacted by economic slowdowns or competing routes. The portfolio is predominantly toll-based (85%), exposing it to volume risk unlike a purely annuity structure. All assets are concession-based with finite lives, and the trust’s long-term value depends on successfully identifying and acquiring new assets as existing concessions approach maturity.
The issue price is at a premium to NAV, limiting immediate downside cushion. Since this is a pure OFS, no fresh capital is deployed into the portfolio, and investors are buying into existing assets rather than funding new ones.