Reliance Infra to Sell Pune-Satara Toll Road to Cube Highways for ₹2,000 Crore

Reliance Infrastructure Ltd (RInfra) has announced plans to sell its Pune-Satara Toll Road project to Cube Highways at an enterprise value (EV) of ₹2,000 crore. Cube Highways, a Singapore-based company, will acquire 100% of the project.

Strategic Move by Reliance Infra

The deal is part of RInfra’s strategy to:

• Monetise non-core assets
• Improve financial flexibility
• Focus on core businesses like defence manufacturing and renewable energy

RInfra plans to gradually exit its road projects under this strategy.

Financial Impact

• Equity proceeds: ₹600 crore, to be invested in the growth of core businesses
• Debt reduction: ₹1,400 crore from consolidated debt
• Current debt: Over ₹6,000 crore on consolidated books (no debt at standalone level)

About the Pune-Satara Toll Road

• Operated by PS Toll Road Pvt. Ltd., a special purpose vehicle (SPV)
• Covers 140 km of six-lane expressway between Pune and Satara on NH-48 (part of the Golden Quadrilateral)
• Key link between Mumbai and Bengaluru
• Built under the Build-Operate-Transfer (Toll) model
• Toll collection began in October 2010

The deal is expected to close by the end of this month, subject to regulatory approvals.

RInfra’s Track Record with Cube Highways

This is Reliance Infra’s second road asset sale to Cube Highways. In 2020, it sold the Delhi-Agra Toll Road to Cube for ₹3,600 crore.

About Cube Highways

• Manages 33 road assets in India
• Backed by global investors like Abu Dhabi Investment Authority (ADIA), Mubadala, I Squared Capital, and British Columbia Investment Management Corp.
• Through its InvIT (Infrastructure Investment Trust), it manages assets worth ₹36,543 crore
• Recently raised ₹820 crore via non-convertible debentures (NCDs)

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Reliance Infra Share Price Reaction

Reliance Infrastructure share price (NSE: RELINFRA) closed at ₹292.30 on August 22, down by ₹10.45 or 3.45% from the previous day. During the session, the stock opened at ₹300.00, touched a high of ₹301.80, and fell to a low of ₹288.05. The company’s market capitalisation stood at ₹11.79K crore, with a P/E ratio of 2.20. The stock has touched a 52-week high of ₹423.40 and a 52-week low of ₹195.00.

Conclusion

Reliance Infrastructure’s decision to sell the Pune-Satara project marks another step in its journey to reduce debt and shift focus to core growth sectors. For Cube Highways, the acquisition adds another key highway to its growing portfolio in India.

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