Seventy Second Investment Co is likely to sell 4.50 crore shares, or a 3.35% equity stake, in New Delhi-based highway assets operator Cube Highways Trust, through a block deal, according to sources. The offer size is pegged at ₹688.1 crore, with the floor price set at ₹153 per share.
The floor price represents a discount of up to 0.66% to the current market price. The proposed transaction involves 4.50 crore shares, equivalent to 3.35% of the equity in Cube Highways Trust. In July this year, Cube Highways Trust said it expects to expand its portfolio to 34 assets in the near term as it continues to acquire highway projects from its sponsors while also exploring opportunities in the open market.
I have already told you the fact that we have signed four more assets and these are from the sponsors."The trust has acquired nine assets since its private listing three years ago. Of these, seven came from its sponsors, while two were acquired directly from the market.
The company said it will continue to pursue both acquisition strategies, although sponsor assets are expected to remain the primary source of growth because they are acquired after being de-risked and meeting the trust's quality standards. The current portfolio consists of 27 operational assets spread across 12 states and one Union Territory.
Of these, 18 are toll road assets that benefit from economic growth and inflation-linked traffic, while the remaining nine are annuity assets that provide predictable cash flows without traffic risk. Shares of Cube Highways Trust ended at ₹154.00, down by ₹2.00, or 1.28%, on the BSE.