BSECube Highways TrustHighNeutral
Announced Thu, 12 Jun, 2025 · 18:29 IST

Cube Highways Trust has informed the Exchange regarding Disclosure of material issue

Price reaction

Awaiting price reaction for this filing.

AI summary

Cube Highways Trust (InvIT) has completed the acquisition of 100% equity in two operational annuity road projects — Quazigund Expressway Pvt Ltd and Athaang Jammu Udhampur Highway Pvt Ltd — from National Investment and Infrastructure Fund (NIIF). The two assets, spanning ~80 km in Jammu & Kashmir, have a combined enterprise value of ₹4,185 crore and over six years of residual concession life backed by fixed semi-annual NHAI annuity payments. The deal is expected to be accretive to net distributable cash flows by ~₹2.3 per unit annually over the next five years. Post-acquisition, the Trust's AUM will grow to ₹36,451 crore (from ₹32,266 crore as of March 2025), with annuity revenue rising to 33% of total revenue.

Likely market impact

Positive for unitholders — the deal expands the Trust's portfolio with de-risked, traffic-insulated cash flows and boosts per-unit distributions, while the AAA credit rating and ~49% Net Debt/AUM ratio suggest room for further accretive acquisitions.