L&T and Affiliates Secure 8.03% Stake in Cube Highways Trust for Rs 1,243 Crore

Larsen & Toubro, along with three affiliates and three other entities, acquired an 8.03% stake in Cube Highways Trust for Rs 1,243 crore through open market transactions. The sellers included Cube Highways and Infrastructure I-D Pte, Cube Highways and Infrastructure Pte, and Cube Mobility Investments, who executed separate bulk deals on the BSE.

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The acquisition involved Larsen & Toubro, L&T Welfare Company, L&T Employees Welfare Foundation, L&T Officers and Supervisory Staff Provident Fund, SBI Mutual Fund, Kotak Mahindra Life Insurance, and ASK Financial Holdings. They collectively purchased 10.36 crore units or 8.03% of Cube InvIT at an average price of Rs 120 per unit, amounting to Rs 1,243.20 crore.

Cube Highways Trust Stake Changes

Following this transaction, Larsen & Toubro's stake in Cube Highways Trust increased from 3.75% to 9.24%. However, details about other buyers of Cube Highways Trust units were not available on the exchange. Meanwhile, Cube Highways and Infrastructure I-D, Cube Highways and Infrastructure, and Cube Mobility Investments sold 15.60 crore units or a 12.09% stake in Cube Highways Trust.

These units were sold at an average price of Rs 120 each, resulting in a transaction value of Rs 1,872 crore. Cube Highways Trust units surged by 20%, closing at Rs 120 per unit on the BSE.

Financial Performance and Acquisitions

In July, Cube Highways Trust reported a profit of Rs 3.8 crore for the June quarter due to higher income. This marked an improvement from a Rs 20 crore loss in the same period last year. Total income rose to Rs 830.9 crore from Rs 781.6 crore, while expenses increased to Rs 823 crore from Rs 799.5 crore.

In April, Cube Highways Trust announced plans to acquire seven highway assets from Singapore-based Cube Highways and Infrastructure III Pte Ltd and Cube Highways Infrastructure Pte Ltd for an enterprise value of Rs 5,172 crore.

Cube Highways invests in road and highway projects as well as other infrastructure sectors in India. It implements the public-private partnership (PPP) model to operate and manage highway projects with central and state governments.

The Singapore-based Cube Highways is supported by a diverse group of investors including an arm of Abu Dhabi Investment Authority, British Columbia Investment Management Corporation, and Abu Dhabi's sovereign investor Mubadala Investment Company.

Cube Highways Trust continues to expand its portfolio through strategic acquisitions and partnerships in India's infrastructure sector.