Cube Highways Trust raises Rs 1,687 crore from anchor investors
Cube Highways Trust has secured Rs 1,687 crore from anchor investors, signalling robust institutional demand ahead of the road infrastructure InvIT's market debut.
Cube Highways Trust has allocated 11.10 crore units to 59 funds at Rs 152 per unit, raising Rs 1,687 crore in its anchor book ahead of an initial public offering. This heavy pre-IPO placement demonstrates strong institutional confidence in the toll-road sector. Prazim Trading and Investment Co, an entity linked to Premji Invest, emerged as the largest anchor investor with a Rs 300 crore allocation.
Beyond the anchor book, the InvIT secured a separate Rs 1,250 crore commitment from strategic investors for 8.22 crore units at the same price. This strategic tranche sits outside the net offer. Prazim committed a further Rs 950 crore to this portion for 6.25 crore units. HDFC Life Insurance and HDFC Pension Fund Management committed Rs 100 crore each, while Axis Max Life and WhiteOak Capital REIT & InvIT Alternatives Fund I put in Rs 50 crore apiece.
The anchor book drew widespread participation from India's domestic asset management industry. A total of 12 mutual funds deployed capital across 26 separate schemes. Major allocations went to life insurers like ICICI Prudential Life Insurance and SBI Life Insurance, alongside prominent mutual funds including HDFC, SBI, Nippon India, and Tata.
The capital raised supports a portfolio of 27 operational road assets stretching across 8,754 lane kilometres in 12 states and one Union Territory. As of March 31, 2026, these toll roads carry an average residual concession life of 18 years. This long-duration profile matches the liabilities of domestic institutional investors seeking steady infrastructure yields.
The public issue reserves 75 percent of the net units for qualified institutional buyers, leaving the remaining 25 percent for non-institutional investors. Bids must be placed for a minimum of 95 units. The basis of allotment is expected around July 29, with refunds and unit credits processed the following day. Trading is scheduled to begin on or about August 3.
Kotak Mahindra Capital Company, HDFC Bank, HSBC Securities and Capital Markets (India), and JM Financial are managing the offer. KFin Technologies is serving as the registrar to the issue.
