Cube Highways Trust IPO opens on July 22: Price band, key dates, issue size and more

Cube Highways Trust, a privately listed infrastructure investment trust operating road and other infrastructure assets in India, has fixed the price band for its Rs 5,000-crore initial public offering at Rs 151-152 per unit on July 15. At the upper end of the band, the InvIT is valued at Rs 20,430 crore.

The IPO will open for public subscription on July 22 and close on July 24, while the anchor book for institutional investors will open for one day on July 21. The Cube Highways and Infrastructure-sponsored InvIT has approached the capital markets to convert from a privately listed infrastructure investment trust into a publicly listed InvIT through an offer for sale.

BCI IRR India Holdings and Seventy Second Investment Company, along with sponsor entities Cube Highways and Infrastructure and Cube Mobility Investments, are the selling shareholders in the issue. The InvIT will not receive any proceeds from the offer.

It has already secured commitments from Azim Premji-backed Prazim Trading and Investment Company, HDFC Life Insurance Company, HDFC Pension Fund Management, Axis Max Life Insurance and WhiteOak Capital REIT & InvIT Alternatives Fund, which will buy 8.22 crore units worth Rs 1,250 crore at the upper end of the price band.

Through its portfolio assets, Cube Highways Trust operates 27 road assets spanning 8,754 lane kilometres across India, including Andhra Pradesh Expressway, DA Toll Road, Farakka-Raiganj Highways, Ghaziabad Aligarh Expressway, Jhansi-Lalitpur Tollway, Kanyakumari-Etturavattam Tollway, Mahua Bharatpur Expressways, N.A.M. Expressway, Nelamangala Devihalli Expressway and Walayar Vadakkencherry Expressways.

Units of Cube Highways Trust traded at Rs 153.40 on the National Stock Exchange on the morning of July 14, down 2.29 per cent, though they have gained 53 per cent from their 2023 offer price of Rs 100 apiece. In April 2023, Cube Highways Trust had raised more than Rs 5,200 crore through a private placement at an offer price of Rs 100 per ordinary unit.

Kotak Mahindra Capital Company, HDFC Bank, JM Financial Services and HSBC Securities and Capital Markets (India) are the book running lead managers to the issue, while KFin Technologies is the registrar and Axis Trustee Services is the trustee. The offer will mark Cube Highways Trust's move from a privately listed InvIT to a publicly listed one through an OFS.