Toll Collection King Expands with a Rs 717 Crore Move in Infrastructure - What’s Next?
One of India’s biggest road investors secures a new asset in its latest acquisition spree.
Cube Highways Trust has completed the acquisition of 100 per cent equity in N.A.M. Expressway Limited for Rs 717.60 crore. The deal was executed as per the Share Purchase Agreement signed on June 4, 2024. This acquisition strengthens Cube Highways' position in the roads and highways sector.
Company Overview
Cube Highways Trust is an Infrastructure Investment Trust (InvIT) focused on the roads sector. Registered with SEBI, it is among the largest InvITs in India, managing 25 road assets across 12 states. The portfolio includes toll roads, annuity-based projects, and Hybrid Annuity Model (HAM) roads.
Business Operations
Cube Highways operates and maintains a total road length of 1,940 km, covering 8,450 lane km with 27 toll plazas. The company’s revenue is primarily generated from toll collections (79 per cent) and annuity-based payments (21 per cent). It continues to expand its portfolio by acquiring new projects, such as N.A.M. Expressway Limited.
Project Portfolio
The company’s portfolio consists of multiple road assets, including Jaipur Mahua Tollway, Western UP Tollway, and Nelamangala Devihalli Expressway under the Build-Operate-Transfer (BOT) model. Annuity-based assets include Andhra Pradesh Expressway and Mangalwedha Solapur Highways.
Ownership and Management
Cube Highways Trust is backed by major global investors, including I Squared Capital, Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Mubadala Investment Company. Cube Highways Fund Advisors Pvt. Ltd. manages investment decisions, while Cube Highways and Transportation Assets Advisors Pvt. Ltd. oversees project operations and compliance.
Stock Valuation
Cube Highways Trust has a market capitalization of Rs 16,280 crore and an enterprise value of Rs 24,414 crore. The company’s price-to-book (P/B) ratio stands at 1.22, in line with the industry average. It has a debt-to-equity (D/E) ratio of 0.83, and its total assets are valued at Rs 24,601 crore.