In India's highways sector, institutional money overtakes promoters

India's pecking order in terms of tolling is already headed towards being fund-focussed

Private equity (PE)-funded Cube Highways closed two road deals in the past month, both bought from promoter-driven and listed entities. Interest from PE, sovereign and pension funds has institutionalised India’s road sector more than ever before.

Historically, domestic companies have been keener on returns from construction of infrastructure, including roads, than from operating those assets. In this scenario, institutional investors with interest in long-term, stable returns and access to cheaper capital make for the right fit.

Cube Highways has acquired one asset each from Hindustan Construction Company (HCC) and KNR Constructions, both listed entities, so far in 2020. “The reality is developers