KKR and Cube Highways InvITs Eye IPO Route, Targeting Up to ₹5,000 Crore Each

According to a report by Moneycontrol, India’s infrastructure investment landscape is set for a transformation as KKR-backed Vertis Infrastructure Trust and Cube Highways Trust gear up for public IPOs. Each trust plans to raise up to ₹5,000 crore, capitalising on rising demand from domestic investors searching for high-yield assets.

Vertis and Cube Highways InvITs Seek Public Listing for Growth Capital

Vertis Infrastructure Trust, backed by KKR, and Cube Highways Trust, promoted by I Squared Capital, are preparing to transition from private to public Infrastructure Investment Trusts (InvITs). With each IPO targeting ₹4,000 crore to ₹5,000 crore, these listings aim to meet the increasing appetite for yield-generating infrastructure investments among Indian investors like family offices and high-net-worth individuals.

Rising Demand for Yield-Generating Structures

InvITs distribute income from operational infrastructure assets like highways and renewable projects. With domestic interest rates stable and global yields offering stiff competition, Indian InvITs are finding favour among local investors. The shift from private to public structures allows more investors access and increases compliance transparency, aiding in fundraising efficiency.

Strong Portfolios Back Planned Public Offers

Cube Highways manages assets worth ₹32,266 crore, which will expand to ₹36,451 crore following recent road project acquisitions. Its portfolio includes 27 assets across 8,819 lane kilometres, and it delivered an annualised yield of 11.45% in FY25. Meanwhile, Vertis Infrastructure, with a road project portfolio across 10 states, currently manages ₹25,000 crore in assets, poised to grow after a ₹9,005 crore deal with PNC Infratech.

Read More: Sunteck Realty to Develop ₹1,200 Crore Project on Mira Road Under New JDA!

Shift from Private to Public: Regulatory and Market Dynamics

SEBI allows InvITs to operate as public or private entities. While most private equity sponsors preferred private InvITs for reduced disclosure requirements, market dynamics are pushing a shift toward public structures. Public InvITs ensure broader participation and adhere to stricter compliance, which builds investor confidence, especially when overseas appetite weakens.

Conclusion

The upcoming IPOs from KKR’s Vertis and Cube Highways mark a strategic shift in India’s infrastructure investment space. Targeting ₹5,000 crore each, the public listings are designed to unleash wider investor participation and fuel future growth in the core infrastructure sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.