Cube Highways Trust (Cube InvIT), a leading infrastructure investment trust in India, has filed for the country’s first conversion of a privately listed InvIT into a publicly listed one through the offer for sale (OFS) route, aiming to raise ₹5,000 crore.

Backed by global investors such as I Squared Capital (a subsidiary of ADIA), British Columbia Investment Management Corporation, and Mubadala Investment Company, Cube plans to transition to a public InvIT structure through the OFS route, marking a first-of-its-kind move in India’s InvIT space.

Under the OFS, the InvIT, sponsored by Cube Highways and Infrastructure Pte. Ltd., will see existing unitholders sell units aggregating up to ₹5,000 crore. These include BCI IRR India Holdings Limited Partnership, Cube Highways and Infrastructure II and III Pte. Ltd., Cube Mobility Investments Pte. Ltd., and Seventy Second Investment Company LLC.

The InvIT currently holds AAA ratings from CRISIL, India Ratings and Research, and ICRA Limited. Its prominent unitholders include BCI IRR India Holdings, Larsen & Toubro, Mubadala, State Bank of India, and Kotak Mahindra Bank.

Strong growth and portfolio scale

As of September 30, 2025, Cube Highways Trust had an enterprise value (AUM) of ₹36,519.91 crore. The InvIT has delivered a 43% growth in net asset value (NAV) per unit since its initial private listing in April 2023.

Its unitholder base has expanded significantly, growing from around 40 investors in April 2023 to over 400 by September 2025.

The trust currently operates 27 road assets across 12 states and one Union Territory, including 18 toll roads, six hybrid annuity projects, and three annuity assets. These span BOT/DBFOT and TOT models, reflecting a diversified asset base.

Ahead of the public listing, the InvIT plans to acquire four additional highway and tunnel projects through swap transactions, which would expand its portfolio to 31 assets spanning 9,811 lane kilometres.

The portfolio maintains a balanced income mix, with an 85:15 ratio between toll and annuity assets, and a weighted average residual concession period of 18.44 years.

Rationale for public listing

The proposed conversion aims to broaden the investor base and improve liquidity. A public listing would enable participation from mutual funds, insurance companies, and pension funds, which typically have limited exposure to privately listed InvITs due to liquidity and mark-to-market constraints.

The move is also expected to enhance liquidity for existing unitholders and strengthen the InvIT’s ability to raise capital for future acquisitions and expansion.

Kotak Mahindra Capital Company Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, and JM Financial Limited are acting as book-running lead managers for the issue, while Axis Trustee Services Limited is the trustee.

The transition is supported by recent amendments to the Securities and Exchange Board of India’s InvIT regulations, which have eased listing norms and relaxed lock-in requirements. Notably, no additional lock-in will apply to non-sponsor unitholders.

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