I Squared, ADIA to sell up to $400 million stake in Cube Highways InvIT

I Squared, ADIA to sell up to $400 million stake in Cube Highways InvIT

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26 Aug, 2025 12:21

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Cube Highways InvIT shareholders - global infrastructure investor I Squared Capital and sovereign wealth fund Abu Dhabi Investment Authority (ADIA) - are looking to sell as much as $400 million worth of stake in the InvIT, sources aware of the development told Moneycontrol.

This will be the second stake sale by Cube shareholders in the InvIT following a Rs 1,423.2 crore sale in April 2023. Apart from the secondary stake sale, the InvIT also raised Rs 3,802.59 crore of primary capital from investors such as British Columbia Investment Management Corp and Mubadala.

I Squared Capital and ADIA hold stakes in the InvIT through promoter entities Cube Highways and Infrastructure Pte. Ltd and Cube Highways and Infrastructure III Pte. Ltd, which collectively hold a 59.5 percent stake in the InvIT currently.

The shareholders have appointed investment banks JP Morgan and Axis Capital to find buyers for their stake, sources cited above said, adding that the Cube shareholders have already initiated discussions with prospective buyers for the proposed stake sale.

I Squared Capital declined to comment. Emails sent to Cube InvIT and ADIA did not elicit a response.

Cube InvIT Portfolio

The Cube InvIT comprises 18 toll and annuity road assets, with a cumulative length of 6,220 lane kilometres, and a pipeline of seven roads for which it has signed a right of first offer with its sponsors. These seven assets include six hybrid annuity model (HAM) roads and one toll road. The road projects housed under the InvIT are spread across 12 Indian states.

The Cube InvIT's current assets under management stand at Rs 25,811 crore.

The InvIT’s assets witnessed a 6.5 percent increase in traffic and an 11.9 percent rise in toll revenue from FY23 to FY24.

Average daily toll collection for the portfolio increased to Rs 7 crore in FY24 from Rs 6.3 crore in FY23.

Overall, revenue from operations for the InvIT stood at Rs 2,916.1 crore in FY24 and the trust has distributed Rs 1,301.9 crore to its shareholders since its listing.