Infrastructure Boom: Cube Highways Trust Fixes IPO Price Band at Rs 151-152 After Hitting ₹20,430 Crore Valuation

Infrastructure Boom: Cube Highways Trust Fixes IPO Price Band at Rs 151-152 After Hitting ₹20,430 Crore Valuation​

Cube Highways Trust, a privately listed infrastructure investment trust (InvIT), has officially fixed its price band for the upcoming initial public offering (IPO). The InvIT, which manages significant road and other infrastructure assets across India, is now set to raise Rs 5,000 crore in this capital market move. The IPO’s price band has been established at Rs 151-152 per unit, reflecting a massive valuation of the trust as high as ₹20,430 crore at the upper end of the range.

Key Details of the Cube Highways Trust IPO​

The InvIT aims to transition from a privately held entity into a publicly listed investment vehicle through an offer for sale (OFS). The public subscription phase for the IPO is scheduled to commence on July 22 and conclude on July 24. A dedicated anchor book, targeting institutional investors, will open one day prior on July 21.

As part of this OFS structure, proceeds from the IPO will not be received by the InvIT itself. Instead, the selling shareholders in the Cube Highways Trust IPO include BCI IRR India Holdings, Seventy Second Investment Company, and the sponsor entities: Cube Highways and Infrastructure and Cube Mobility Investments.

Institutional Commitments Drive Strong Market Interest​

The pricing of the IPO has been met with significant interest from major institutional players. The InvIT has successfully secured commitments from several established investment firms. These committed investors include Prazim Trading and Investment Company (backed by Azim Premji), HDFC Life Insurance Company, Axis Max Life Insurance, and WhiteOak Capital REIT & InvIT Alternatives Fund.

These institutional commitments alone represent a strong buying interest, with assured purchases amounting to 8.22 crore units, equivalent to Rs 1,250 crore at the upper end of the price band. This backing signals confidence from deep-pocketed investors in the infrastructure trust’s underlying assets.

Scope and Scale of Infrastructure Assets​

Cube Highways Trust operates a substantial portfolio of road assets that span across various states in India. The InvIT manages 27 distinct road assets, which cover a total length of 8,754 lane kilometres. Its operations include major tollways such as the Andhra Pradesh Expressway, Farakka-Raiganj Highways, and Jhansi-Lalitpur Tollway.

The operating portfolio features diverse infrastructure projects like the Kanyakumari-Etturavattam Tollway and Mahua Bharatpur Expressways. This wide operational base provides a robust foundation for the publicly traded InvIT units.

Market Performance and Offering Management​

Units of the Cube Highways Trust have recently shown strong momentum in the market, trading at Rs 153.40 on the National Stock Exchange on July 14, registering a decline of 2.29 percent. Crucially, these units have seen a healthy gain of 53 percent compared to their original offer price of Rs 100 per unit back in 2023.

Prior to this IPO, the InvIT had successfully raised over Rs 5,200 crore through a private placement conducted in April 2023 at an offer price of Rs 100 per ordinary unit. The public offering is being managed by top-tier merchant bankers including Kotak Mahindra Capital Company, HDFC Bank, HSBC Securities and Capital Markets (India), and JM Financial.