Cube Highways Trust
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Subscription
- Qualified institutionalQIB
- 5.32×
- Big non-institutionalbNII · above ₹10 lakh
- 4.63×
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 7 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 05 Aug 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 04 Aug 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 03 Aug 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 02 Aug 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 01 Aug 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 31 Jul 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
| 30 Jul 2026 | ₹1.75 | — | ₹100 | — | ₹166.25 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Issue details
- IPO date
- 22 Jul 2026 – 24 Jul 2026
- Listing date
- 31 Jul 2026
- Face value
- ₹10 per share
- Price band
- ₹151 – ₹152
- Issue price
- ₹152 per share
- Lot size
- 95 shares
- Sale type
- Offer for sale
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹5,000 Cr
- Fresh issue
- ₹0 Cr 0 shares
- Offer for sale
- ₹5,000 Cr 32,89,47,365 shares
- ISIN
- INE0NR623014
- CIN
- ININVIT002223002
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- B-376, Upper Ground Floor, Nirman Vihar, New Delhi 110 092
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 7,45,03,370 | 54.55% | 54.55% |
| Anchor investor · within QIB | 11,10,19,565 | — | 81.28% |
| NII (HNI) | 6,20,86,110 | 45.45% | 45.45% |
| bNII > ₹10L · within NII | 6,20,86,110 | — | 45.45% |
| sNII < ₹10L · within NII | 0 | — | 0.00% |
| Retail (RII) | 0 | 0.00% | 0.00% |
| Employee | 0 | — | 0.00% |
| Market maker | 0 | — | 0.00% |
| Total issue | 13,65,89,480 | — | 100.00% |
Net offer to the public of 13,65,89,480 shares, out of a total issue of 13,65,89,480. Indented rows sit inside the category above them and are not added to it.
Application size
Minimum 95 shares per lot, in multiples, at ₹152
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 95 | ₹14,440 |
| Retail (max) | 13 | 1,235 | ₹1,87,720 |
| S-HNI (min) | 14 | 1,330 | ₹2,02,160 |
| S-HNI (max) | 69 | 6,555 | ₹9,96,360 |
| B-HNI (min) | 70 | 6,650 | ₹10,10,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹152 per share
| Metric | Pre-issue | Post-issue |
|---|
Key performance indicators
Latest reported period
- EBITDA margin
- 74.20%
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 4,359.03 | 3,453.15 | 3,074.1 |
| Revenue from operations | 4,238.88 | 3,307.14 | 2,916.13 |
| Other income | 120.14 | 146 | 157.96 |
| Total expenses | 4,034.34 | 3,503.46 | 3,760.95 |
| Operating profit | 324.69 | -50.31 | -686.85 |
| Operating margin | 7.45% | -1.46% | -22.34% |
| Profit before tax | 324.68 | -50.31 | -705.92 |
| Profit after tax | 216.72 | -35.72 | -686.85 |
| PAT margin | 4.97% | -1.03% | -22.34% |
| Balance sheet | |||
| Total assets | 29,398.47 | 28,000.15 | 24,625.75 |
| Current assets | 3,380.32 | 2,570.93 | 2,277.41 |
| Current liabilities | 1,445.97 | 1,253.74 | 1,130.24 |
| Total liabilities | 19,615.55 | 16,562.69 | 11,676.76 |
| Net worth | 9,782.91 | 11,437.45 | 12,948.99 |
| Current ratio | 2.34× | 2.05× | 2.01× |
| Return on equity | 2.22% | -0.31% | -5.30% |
| Cash flow | |||
| Operating cash flow | 3,802.94 | 2,916.35 | 1,869.94 |
| Investing cash flow | -758.47 | -301.94 | -1,032.88 |
| Financing cash flow | -1,224.05 | -2,186.5 | -1,224.05 |
| Net cash flow | -824.96 | 427.91 | -386.99 |
Selling shareholders
Existing holders selling into the offer — these proceeds go to the seller, not to the company
| Seller | Capacity | Shares offered | Avg. cost |
|---|---|---|---|
| BCI IRR India Holdings Inc. | — | not yet stated | — |
| BCI IRR India Holdings Limited Partnership | — | not yet stated | — |
| Cube Highways and Infrastructure II Pte. Ltd. | — | not yet stated | — |
| Cube Highways and Infrastructure III Pte. Ltd. | — | not yet stated | — |
| Cube Mobility Investments Pte. Ltd. | — | not yet stated | — |
| Seventy Second Investment Company LLC | — | not yet stated | — |
About Cube Highways Trust
Cube Highways Trust (the Trust) is an infrastructure investment trust registered with SEBI under the InvIT Regulations, established to acquire and operate road infrastructure assets in India through a public-private partnership model. The Trust was initially incorporated on December 7, 2021, and listed privately on the NSE and BSE on April 19, 2023. As of September 30, 2025, the Trust operated 27 road assets aggregating 8,754 lane kilometers across 12 states and one union territory through special purpose vehicles. The Trust generates revenue from toll collections on operational highways and fixed annuity payments from the National Highways Authority of India. With a weighted average residual concession period of 18.44 years as of September 30, 2025, the Trust maintains an Enterprise Value/AUM of ₹365,199.18 million and has delivered cumulative distributions of ₹35,897.35 million to unitholders since listing, representing a NAV per unit growth of 43% at a CAGR of 15.70%.
Management
Vinay Chandramouli Sekar
CEO
Strengths
As stated in the offer document
Dedicated Growth Vehicle and Access to Strong Pipeline of ROFO Assets
The company operates a differentiated growth structure via a Sponsor-level GrowthCo vehicle, enabling asset stabilisation before transfer to the Trust. Since listing in April 2023, nine assets have been added, growing Enterprise Value/AUM to ₹365,199.18 million as of September 30, 2025, with three ROFO assets available for potential acquisition.
Large and Diversified Portfolio of Highway Assets
The company holds 27 Existing Portfolio Assets spanning 8,754 lane kilometers across 12 states and one union territory, with four Proposed Portfolio Assets adding 1,056.68 lane kilometers. The weighted average residual concession life is 18.44 years, with traffic comprising approximately 72% passenger and 28% commercial vehicles.
Differentiated and Proven M&A Capabilities
The company has expanded its portfolio from 18 to 27 assets since listing, with Enterprise Value/AUM growing from ₹236,807.96 million to ₹365,199.18 million. Acquisitions span BOT, HAM, TOT, and annuity models, including a ₹33.46 billion NIIF transaction completed in June 2025.
Strong Portfolio Construction Capabilities
The company follows a disciplined, traffic-led acquisition approach with assets averaging 8.71 years of operating history and 18.44 years of residual concession life. Historical traffic growth has been recorded at 8.7% CAGR in absolute vehicle count and 5.99% CAGR in PCU terms during Financial Years 2023–2025.
Advanced Asset Management and Maintenance Expertise
The company employs lifecycle-based asset management using proprietary tools such as Road-Aid, HiRate, BuildAid, and AI-powered systems, along with advanced materials like PMB and HiMA. The Project Manager oversees more than 8,000 lane kilometers with centralized procurement and an in-house R&D centre.
Risk factors
As stated in the offer document
Dependence on Annuity Payments from NHAI:
A significant portion of the Trust's revenue is derived from annuity-based and HAM projects, where fixed periodic payments are contractually payable by NHAI. Annuity revenue accounted for approximately 12.51% of revenue from operations in FY2025 (₹4,135.70 million), and delays, deductions, or adverse GST treatment on historical annuity receipts could materially reduce net cash flows and distributions to Unitholders.
High Debt Levels and Refinancing Risk:
As of December 31, 2025, the Trust's consolidated borrowings stood at approximately ₹178,834.52 million, representing a net borrowing ratio of 46.86%, with 71.37% of borrowings at variable rates as of September 30, 2025. Any credit rating downgrade from the current 'AAA/Stable' rating, interest rate volatility, or tightening liquidity could significantly increase borrowing costs and impair the Trust's ability to refinance or make distributions.
History of Losses an Uncertainty of Future Profitability:
The Trust has incurred losses of ₹260.36 million for the six months ended September 30, 2024, and ₹357.20 million, ₹7,059.15 million, and ₹277.88 million for FY2025, FY2024, and FY2023, respectively. While a profit of ₹406.85 million was recorded for the six months ended September 30, 2025, there is no assurance of continued profitability, which could adversely affect distributions to Unitholders.
Toll Collection and Traffic Volume Uncertainty:
Toll revenues, which constituted 85.50% of revenue from operations in FY2025 (₹28,275.30 million), are subject to risks including competing infrastructure, regulatory caps on toll rate escalation, government-mandated exemptions, toll leakage via FASTag misuse, and macroeconomic factors affecting traffic volumes. The NHAI's proposed revision of the WPI linking factor and introduction of a ₹3,000 annual user pass scheme could further limit toll revenue growth.
Concession Agreement Termination and Expiry Risk:
The Trust's portfolio assets operate under fixed-term concession agreements, with several assets having short residual lives (e.g., APEPL at 1.00 year and WUPTPL at 0.73 years as of September 30, 2025). Premature termination due to events of default, or failure to extend or replace expiring concessions, could result in loss of operating rights and materially reduce revenue, cash flows, and distributions.
Company Analysis
from DRHPCube Highways Trust is an infrastructure investment trust that acquires, operates and manages toll and annuity-based road assets across India spanning multiple states.
Cube Highways Trust (the Trust) is an infrastructure investment trust registered with SEBI under the InvIT Regulations, established to acquire and operate road infrastructure assets in India through a public-private partnership model. The Trust was initially incorporated on December 7, 2021, and listed privately on the NSE and BSE on April 19, 2023. As of September 30, 2025, the Trust operated 27 road assets aggregating 8,754 lane kilometers across 12 states and one union territory through special purpose vehicles. The Trust generates revenue from toll collections on operational highways and fixed annuity payments from the National Highways Authority of India. With a weighted average residual concession period of 18.44 years as of September 30, 2025, the Trust maintains an Enterprise Value/AUM of ₹365,199.18 million and has delivered cumulative distributions of ₹35,897.35 million to unitholders since listing, representing a NAV per unit growth of 43% at a CAGR of 15.70%.
Objects of the Issue
- Offer for Sale by existing unitholders; the Trust does not receive proceeds from the Offer ₹50,000 million aggregate offer size p.36
Issue Structure
- Total Issue
- ₹50,000 million aggregating up to [●] Units
- Fresh Issue
- Nil (Offer for Sale only)
- Offer for Sale
- Up to ₹50,000 million consisting of: up to ₹10,725.00 million by BCI IRR India Holdings Inc.; up to ₹275.00 million by BCI IRR India Holdings Limited Partnership; up to ₹15,098.70 million by Cube Highways and Infrastructure II Pte. Ltd.; up to ₹6,055.70 million by Cube Highways and Infrastructure III Pte. Ltd.; up to ₹12,908.40 million by Cube Mobility Investments Pte. Ltd.; and up to ₹4,937.20 million by Seventy Second Investment Company LLC
- Price Band
- ₹[●] per Unit (Floor Price) to ₹[●] per Unit (Cap Price)
- Lot Size
- Minimum of [●] Units and in multiples of [●] Units thereafter by Bidders (other than Anchor Investors and Strategic Investors); ₹100 million for Anchor Investors
- Face Value
- Not Applicable
Business Model
The Trust earns revenue primarily through two channels: (1) toll collections from users of toll-based roads operated on BOT (Build-Operate-Transfer), DBFOT (Design-Build-Finance-Operate-Transfer) and TOT (Toll-Operate-Transfer) models, and (2) fixed annuity payments from the NHAI and state governments for annuity-based and HAM (Hybrid Annuity Model) projects. As of September 30, 2025, toll assets represented 85% of AUM while annuity assets represented 15%. Revenue is generated through special purpose vehicles that hold concession agreements with the NHAI or state concessioning authorities. The Trust finances these assets through a mix of internal cash flows and external debt, with stringent adherence to escrow waterfall mechanisms prescribed under concession agreements that prioritize statutory payments, operations and maintenance costs, debt service, and finally distributions to unitholders.
Business Segments
SWOT Analysis
- • Diversified portfolio of 27 operational toll and annuity road assets spanning 8,754 lane kilometers across 12 states with balanced 85:15 toll-to-annuity revenue mix(p.81)
- • Strong institutional backing with access to a pipeline of ROFO assets and proven M&A capabilities from sponsor group(p.88)
- • Consistent quarterly distributions to unitholders with 43% NAV per unit growth since listing at 15.70% CAGR(p.81)
- • High-quality debt ratings (AAA/Stable from CRISIL, ICRA, and India Ratings) with prudent debt management(p.82)
- • Weighted average residual concession period of 18.44 years with experienced operating history of 8.71 years providing long-term cash flow visibility(p.84)
- • First sustainability-linked bond in India's road infrastructure sector issued in February 2025, demonstrating ESG commitment and market access(p.83)
- • Advanced asset management and maintenance expertise with technology platforms including in-house TMS, ATMS, and digital maintenance tools(p.88)
- • Expanding unitholder base from 40 to 656 unitholders demonstrating market confidence and investor diversification(p.82)
- • Significant geographic concentration with Delhi-NCR, Uttar Pradesh, and Tamil Nadu accounting for 54.18% of AUM, exposing trust to regional economic risks(p.99)
- • Four assets (WUPTPL, JMTPL, MBEL, APEPL) with residual concession periods of 5.72 years or less, requiring urgent renewal or replacement strategies(p.95)
- • High dependence on toll collections (81.35% of revenue) subject to traffic uncertainties, competing roads, exemptions, and vehicle mix changes(p.94)
- • Annuity payment delays documented with instances ranging up to 20 days, creating liquidity mismatches despite contract-specified payment dates(p.92)
- • CNTL (Proposed Portfolio Asset) carries audit qualifications and going concern doubts, requiring financial remediation before full integration(p.99)
- • Restrictive covenants in financing agreements limiting flexibility on capital structure, dividends, and shareholding changes, with lender step-in rights on default(p.102)
- • Integration and refinancing risks with Proposed Portfolio Assets including pending lender no-objection certificates and regulatory approvals from NHAI, RBI, and CCI(p.103)
- • Ongoing litigation involving Portfolio Assets with 43 pending cases (civil, regulatory, criminal) and material outstanding claims of ₹16,470.53 million(p.113)
- • Access to government's strong infrastructure investment pipeline with budgetary allocation growing to ₹10.43 trillion in FY2026, a CAGR of 18.4%(p.76)
- • Significant asset monetization pipeline of ₹5.9 trillion through FY2030 from road sector, nearly double the ₹2.8 trillion raised until FY2025(p.77)
- • Acquisition of four Proposed Portfolio Assets (BFHL, WMTPL, CNTL, DTPL) with combined AUM of ₹72,925.32 million expanding portfolio by 9.8% and diversifying across states(p.88)
- • ROFO rights on three additional assets (KHEPL, MHPL2, DHMEPL) with combined FY2025 revenue of ₹8,805.92 million providing future organic growth(p.87)
- • Growing preference for non-bulk freight transport rising to 76.5% of road freight by FY2026, benefiting diversified toll asset portfolio(p.77)
- • Bharatmala Pariyojana with 73% completion rate and active MoRTH allocation of ₹2,873.33 billion (59% to NHAI) supporting continued asset availability(p.78)
- • Successful integration of 6 HAM assets acquired between June-December 2024 demonstrating operational capability to scale portfolio efficiently(p.118)
- • Annual Pass program generating ₹1.5 billion upfront in first four days (0.5 million passes) providing revenue visibility and new monetization channel(p.78)
- • Regulatory risk: Concession extensions depend on traffic targets with PCU conversion factor disputes and authority discretion, potentially reducing asset tenure(p.92)
- • Traffic volatility: Competing roads, exemptions, toll leakage, and vehicle mix changes outside management control directly reduce toll collections(p.93)
- • Interest rate and refinancing risk: Rising rates or market disruptions could increase borrowing costs and reduce debt capacity given existing ₹178.8 billion debt(p.96)
- • Political and regulatory risk: Government policy changes on tolling, infrastructure investment priorities, or PPP model could adversely affect operations(p.101)
- • Monsoon and weather risk: Heavy rains, landslides, and temperature fluctuations disrupt operations and increase maintenance costs without offsetting revenue increases(p.100)
- • Concession termination risk: Default events or authority actions could trigger early termination of concessions with inadequate compensation provisions(p.95)
- • Supply chain and labor risk: Construction material price inflation (bitumen, aggregates), labor cost escalation, and potential strikes disrupt maintenance and increase O&M costs(p.103)
- • Regulatory compliance risk: SEBI inspections have identified disclosure deficiencies and related party transaction compliance gaps requiring remedial action(p.104)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Cube Highways and Infrastructure V Pte. Ltd. | Sponsor | 41.40% | — |
| BCI IRR India Holdings Inc. | Selling Unitholder | — | — |
| BCI IRR India Holdings Limited Partnership | Selling Unitholder | — | — |
| Cube Highways and Infrastructure II Pte. Ltd. | Selling Unitholder / Sponsor Group | — | — |
| Cube Highways and Infrastructure III Pte. Ltd. | Selling Unitholder / Sponsor Group | — | — |
| Cube Mobility Investments Pte. Ltd. | Selling Unitholder / Sponsor Group | — | — |
| Seventy Second Investment Company LLC | Selling Unitholder | — | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.