KKR, Cube Plan ₹10,000 Cr InvIT IPOs to Unlock Road Assets

Private equity giant KKR and Cube Highways Trust are preparing to bring two of its infrastructure investment trusts (InvITs) to the public market, with each expected to raise ₹5,000 crore. This shift marks a significant step in KKR’s & cube’s broader plan to tap into public market funding for its Indian road assets and reduce dependency on private equity.

Converting a Private Trust into a Public One
One of KKR’s key trusts—Highways Infrastructure Trust (HIT)—may soon convert from a privately held InvIT to a publicly listed entity. If this move materialises, it would be the first time a private InvIT in India transitions into a publicly traded trust. Currently, HIT operates around 1,940 km of roadways across 12 states.

By making HIT accessible to public investors, KKR is looking to widen its funding base and create more financial flexibility. Discussions are still in progress, and the decision is yet to be finalised.

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About Cube & Highways Portfolio
As of March 31, 2025, its assets under management (AUM) have increased by 25% year over year to ₹32,266 crore. The trust's assets are anticipated to reach ₹36,451 crore following its recent purchase of two road projects from NIIF.

Cube InvIT announced an annualised yield of 11.45% for FY25. Its portfolio of roads includes 27 assets totalling 8,819 lane kilometres.
 

Expansion Backed by Equity and Debt

In recent months, HIT has committed ₹5,500 crore to acquire 12 highway projects from PNC Infratech and a large toll road on the Hyderabad–Nagpur route (TOT bundle‑16), worth ₹6,661 crore. This investment includes ₹3,576 crore from KKR and ₹1,695 crore from Ontario Teachers’ Pension Plan (OTPP).

To support this expansion, the trust has secured ₹8,250 crore in long-term debt from a consortium of top Indian banks such as Axis Bank, HDFC, ICICI, SBI, and PNB. These projects are set to boost the trust’s total operational road length to around 3,800 lane kilometres, with a presence in Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan.

A Larger Play in Infrastructure

According to the source, two of India's largest private road operators, Vertis Infrastructure Trust, supported by KKR, and Cube Highways Trust, sponsored by I Squared Capital, are considering initial public offerings (IPOs) to become publicly traded companies.
Vertis Infrastructure and Cube Highways want to initiate initial public offerings (IPOs) as part of the process, with the aim of raising around ₹ 4,000 to ₹5,000 crore apiece.

A public listing for HIT would mark a first in India’s InvIT sector, which until now has largely relied on institutional investors. A shift to public ownership could set a new benchmark for similar private trusts.

What this Means for the Market

Taking these InvITs public could allow KKR to attract retail and pension fund investments, offering increased liquidity and stronger valuation visibility. It also reflects the firm’s belief in the long-term profitability of India’s road assets, especially as the government steps up asset monetisation via its toll-operate-transfer (TOT) model.

If successful, this move could inspire other private InvITs to follow suit, giving the public more access to infrastructure investments and encouraging greater capital flow into the sector.

Conclusion

The move by KKR & Cube to investigate initial public offerings (IPOs) for its InvITs, especially HIT, represents a change in direction towards increased openness and wider investor participation. These IPOs have the potential to change the way infrastructure projects are financed in India, especially with significant acquisitions underway and equity and lending lines established.  The result could create new opportunities for the general population to get involved in long-term infrastructure development.