Cube Highways Trust IPO

Infrastructure Investment Trusts (InvIT) are like mutual funds and allow individual investors to directly make investments in infrastructure projects and earn returns from the same. Cube Highways InvIT is a leading Indian InvIT that allows investors to earn steady long-term returns from road infrastructure.

Cube Highways is all set to list its InvIT enabling investors to participate in infrastructure development and receive a share of the income generated by these projects. The investment trust has been listed on NSE and BSE to raise a sizable amount of capital. 

Here in this article, we’ll provide comprehensive details about the company’s business, offer specifics, and other relevant information. Keep reading to discover more.

About Cube Highways Trust

Cube Highways Trusts is an Indian infrastructure investment trust under the collective sponsorship of Cube Highways and Infrastructure Pte. Ltd. and Cube Highways and Infrastructure III Pte. Ltd. It was established with the objective of operating and acquiring road assets. The group is engaged in incorporating the public-private partnership model in the highway sector of India to manage and operate highway development projects with the state and central government.

The cube group is a fully owned platform which is supported by a diversified investor base including Green Rock B 2014 Limited, Japan Highways International B.V and ISQ Asia Aggregator Pte. Ltd.

Additional Read: A complete list of upcoming IPOs in February 2024

IPO Details and Objectives

The InvIT plans to invest in various ways permitted by the regulations and applicable laws. These investments may include eligible infrastructure projects directly or through special purpose vehicles (SPVs), holding companies, securities of Indian companies in the infrastructure sector, government securities, money market instruments, liquid mutual funds, or cash equivalents.

Company Financials 

Here is the financial summary of Cube Highways Trust:

Particulars*	For the Financial Year 2022, 2021 and 2020
	March 31, 2022	March 31, 2021	March 31, 2020
Total Assets	1,73,601.46	1,77,847.87	1,04,333.76
Total Liabilities	1,74,902.00	1,74,544.72	93,562.11
Total Expenses	13,022.78	7,861.89	5,618.43
Total Revenue	23,798.44	18,857.93	15,965.57
Loss After Tax	(9,780.73)	(2,930.29)	(2,294.46)

Competitive Strengths

Listed below are some of the core strengths of Cube Highways Trust:

• The company has a strong portfolio of construction capabilities with a long vintage along with proven and long residual life.
• It has a large and diversified portfolio of highway assets, comprising 19 highway assets with an aggregate of 1,636.5 km situated across 11 Indian states.
• Moreover, the sponsors of this trust have developed differentiated merger and acquisition capabilities over time enabling them to build a high-quality asset portfolio.
• Over time, the company has developed an asset management and maintenance strategy depending on certain factors such as technology, procurement, and engineering capabilities which are aimed at reducing lifecycle maintenance costs.
• Also, the Cube Highways Trust has developed strong corporate finance capabilities based on certain principles, some of which are long-standing relations with infrastructure lenders, and a proven track record of structuring and negotiation capabilities.

Risks Involved

Here are some of the risk factors associated with the business activities of Cube Highways Trust:

• The trust does not have any operational history or might fail to continue its business operations successfully or fail to generate enough cash flow.
• Toll collection revenue from toll road traffic volume can be impacted upon the completion time of under-construction bridges, roads, flyovers or the introduction of other means of transport. 
• Also, the company is subjected to certain kinds of risks such as pandemic outbreaks, other severe diseases and public health threats. 

Conclusion

By now, you should have gained some understanding of the upcoming Cube Highways Trust issue. Consider reviewing its financial performance, competitive strengths, objective of the issue, risk factors etc. to make an informed decision. There are more which are yet to be announced by the company. 

Visit our website for more current updates regarding the issue which are yet to be announced by the company.

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