Cube Highways Trust Sets ₹151-152 Price Band For ₹5,000 Crore InvIT Issue

Cube Highways Trust has fixed the price band at ₹151-152 per unit for its ₹5,000 crore public Infrastructure Investment Trust (InvIT) issue. The issue will open for subscription on July 22 and close on July 24.

The trust has secured ₹1,250 crore from strategic investors through unit subscription agreements executed on July 13. These investors include Prazim Trading and Investment Company, HDFC Life Insurance Company, HDFC Pension Fund Management, Axis Max Life Insurance Ltd, and WhiteOak Capital REIT & InvIT Alternatives Fund I.

The strategic investors will subscribe to 8.22 crore units at the allocation price of ₹152 per unit. Prazim Trading and Investment Company has committed ₹950 crore, while HDFC Life Insurance Company and HDFC Pension Fund Management will invest ₹100 crore each.

The minimum bid for the issue is 95 units, and thereafter in multiples of 95 units. Of the net issue, 75% has been reserved for qualified institutional buyers (QIBs), while the remaining 25% has been earmarked for non-institutional investors (NIIs).

Cube Highways Trust owns a portfolio of 27 operational road assets spanning 8,754 lane kilometres across 12 states and one Union Territory as of March 31, 2026. The portfolio has an average residual concession life of 18 years.

The units are proposed to be listed on the BSE and NSE. The basis of allotment is expected to be finalised on or about July 29, while refunds and credit of units to successful applicants' demat accounts are likely on July 30. The units are expected to debut on the exchanges on or about August 3.

Kotak Mahindra Capital Company, HDFC Bank, HSBC Securities and Capital Markets (India) Pvt Ltd, and JM Financial are the book running lead managers to the issue, while KFin Technologies is the registrar.

The InvIT issue is a 100% book-built Offer for Sale (OFS) of units aggregating ₹5,000 crore by existing unitholders as the trust transitions from a privately listed InvIT to a publicly listed InvIT.

The issue is significant as it provides an opportunity for investors to participate in the growth of India's infrastructure sector. The trust's portfolio of operational road assets is expected to generate stable cash flows, making it an attractive investment opportunity.

The success of the issue will depend on the response from investors, particularly QIBs and NIIs. The trust's ability to deliver stable returns and manage its portfolio of road assets will be crucial in determining the long-term success of the issue.

In the context of India's infrastructure sector, the InvIT issue is a positive development. It provides a platform for investors to participate in the growth of the sector and helps to mobilize funds for infrastructure development.

Overall, the Cube Highways Trust InvIT issue is a significant development in India's infrastructure sector, and its success will be closely watched by investors and industry stakeholders.

The issue's impact on the Indian economy will be significant, as it will help to mobilize funds for infrastructure development and provide a platform for investors to participate in the growth of the sector. The success of the issue will also depend on the trust's ability to deliver stable returns and manage its portfolio of road assets.

In conclusion, the Cube Highways Trust InvIT issue is a major development in India's infrastructure sector, and its success will have a significant impact on the economy. The issue provides an opportunity for investors to participate in the growth of the sector and helps to mobilize funds for infrastructure development.