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New Delhi-based highway assets operator, Cube Highways Trust expects to expand its portfolio to 34 assets in the near term as it continues to acquire highway projects from its sponsors while also exploring opportunities in the open market.
Vinay C Sekar, CEO and Investment Manager of Cube Highways Trust, said, "We have grown from 18 assets to 27 assets as we speak. I have already told you the fact that we have signed four more assets and these are from the sponsors."
The trust has acquired nine assets since its private listing three years ago. Of these, seven came from its sponsors, while two were acquired directly from the market.
The company said it will continue to pursue both acquisition strategies, although sponsor assets are expected to remain the primary source of growth because they are acquired after being de-risked and meeting the trust's quality standards.
The infrastructure investment trust (InvIT), which opened its ₹5,000-crore offer for sale (OFS) on July 22, said the public listing is aimed at widening its domestic investor base without raising fresh capital.
The current portfolio consists of 27 operational assets spread across 12 states and one Union Territory. Of these, 18 are toll road assets that benefit from economic growth and inflation-linked traffic, while the remaining nine are annuity assets that provide predictable cash flows without traffic risk.
The company believes this mix offers greater diversification across geographies, revenue streams and asset types. Around 70% of its revenue comes from commercial vehicles, while passenger vehicles contribute the remaining 30%.
Cube Highways Trust has also increased its annual distribution to unitholders over the past three years, from ₹10.09 per unit in its first year to ₹11 in the second and ₹13.77 in the third.
According to the management, future distribution growth will be supported by both organic traffic growth and the addition of new assets.
Addressing concerns over a relatively slow National Highways Authority of India (NHAI) bidding environment, Sekar said the trust already has a sizeable acquisition pipeline in place.
He added that although the portfolio has an average operating history of more than nine years, it still has an average concession life of 18 years, providing long-term cash flow visibility.
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Vinay C Sekar, CEO and Investment Manager of Cube Highways Trust, said, "We have grown from 18 assets to 27 assets as we speak. I have already told you the fact that we have signed four more assets and these are from the sponsors."
The trust has acquired nine assets since its private listing three years ago. Of these, seven came from its sponsors, while two were acquired directly from the market.
The company said it will continue to pursue both acquisition strategies, although sponsor assets are expected to remain the primary source of growth because they are acquired after being de-risked and meeting the trust's quality standards.
The infrastructure investment trust (InvIT), which opened its ₹5,000-crore offer for sale (OFS) on July 22, said the public listing is aimed at widening its domestic investor base without raising fresh capital.
The current portfolio consists of 27 operational assets spread across 12 states and one Union Territory. Of these, 18 are toll road assets that benefit from economic growth and inflation-linked traffic, while the remaining nine are annuity assets that provide predictable cash flows without traffic risk.
The company believes this mix offers greater diversification across geographies, revenue streams and asset types. Around 70% of its revenue comes from commercial vehicles, while passenger vehicles contribute the remaining 30%.
Cube Highways Trust has also increased its annual distribution to unitholders over the past three years, from ₹10.09 per unit in its first year to ₹11 in the second and ₹13.77 in the third.
According to the management, future distribution growth will be supported by both organic traffic growth and the addition of new assets.
Addressing concerns over a relatively slow National Highways Authority of India (NHAI) bidding environment, Sekar said the trust already has a sizeable acquisition pipeline in place.
He added that although the portfolio has an average operating history of more than nine years, it still has an average concession life of 18 years, providing long-term cash flow visibility.
Cube Highways Trust generates revenue from two key sources: toll collections across its road portfolio and fixed or semi-fixed annuity payments received from the National Highways Authority of India (NHAI) and state road development authorities. This combination provides a balance of traffic-linked growth and stable, predictable cash flows.
The trust is backed by a strong institutional investor base that includes I Squared Capital, Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company
and the British Columbia Investment Management Corporation (BCI).
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