Highway Infrastructure Ltd. is set to launch its IPO on August 5, 2025, aiming to raise ₹ 130 crore through a combination of fresh issue and offer for sale. The IPO is open for subscription until August 7, 2025. In this detailed Highway Infrastructure IPO review, we will cover key aspects like company background, IPO dates, issue price, financials, objects of the issue, GMP, and whether it is good or bad for investment.
About Highway Infrastructure Ltd.
Incorporated in 1995, Highway Infrastructure Ltd. (HIL) operates across three major verticals: tollway collection, EPC infra projects, and real estate. The company has successfully completed 24 tollway projects and 63 EPC projects as of August 2024. It also has seven ongoing toll projects and 20 ongoing EPC projects.
The company is leveraging advanced technologies like ANPR (Automatic Number Plate Recognition) and RFID-based toll collection systems. Its presence spans 11 states and one union territory in India, and it employs nearly 400 staff.
Competitive Strengths
- Diversified Operations: Multiple revenue streams from toll operations, infra EPC projects, and real estate.
- Technology Adoption: Use of ANPR and RFID for toll collection improves efficiency.
- Strong Project Pipeline: 20 EPC projects currently under execution across Madhya Pradesh.
- Experienced Management: Promoters and key management have vast experience in infrastructure and project execution.
Highway Infrastructure IPO Issue Details
- IPO Open Date: August 5, 2025
- IPO Close Date: August 7, 2025
- Listing Date (Tentative): August 12, 2025
- Face Value: ₹5 per share
- Price Band: ₹65 to ₹70 per share
- Market Lot: 211 shares
- Minimum Investment: ₹13,715 for retail investors
- IPO Size: ₹ 130 crore
- Fresh Issue: ₹ 97.52 crore
- Offer for Sale: ₹ 32.48 crore
- Lead Manager: Pantomath Capital Advisors Pvt Ltd
- Registrar: Bigshare Services Pvt Ltd
- Stock Exchanges: BSE, NSE
Financials of the Company
| Fiscal Year | Total Income (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| FY25 | 504.48 | 22.40 | 31.32 | 117.72 |
| FY24 | 576.58 | 21.41 | 38.44 | 100.19 |
| FY23 | 456.83 | 13.80 | 27.69 | 74.81 |
While revenue declined in FY25 compared to FY24, PAT has shown a slight increase. The net worth has been steadily rising, indicating financial stability.
Objects of the Issue
The net proceeds from the Highway Infrastructure IPO will be used for:
- Funding working capital requirements: ₹ 65 crore
- General corporate purposes
P/E Ratio and Comparison with Listed Peers
- EPS (FY25): ₹ 3.88 (Pre-IPO), ₹ 3.12 (Post-IPO)
- P/E Ratio: 18.06x (Pre-IPO), 22.41x (Post-IPO)
Compared to listed peers in the infrastructure and EPC sectors, the valuation seems moderate to slightly expensive. However, the company’s consistent profitability adds merit.
Grey Market Premium (GMP)
As of August 1, 2025, the Grey Market Premium (GMP) for Highway Infrastructure IPO is approximately ₹ 28. This indicates healthy investor interest in the IPO.
Reasons to Invest in Highway Infrastructure IPO
- Established player with 30+ years of track record
- Multiple revenue verticals ensure diversification
- Moderate GMP indicates positive investor sentiment
- Strategic focus on toll collection and infra EPC segments
- Healthy financial growth and improving profit margins
Risk Factors
- High dependence on government contracts and approvals
- Revenue drop in FY25 could be a red flag
- Real estate vertical contributes minimally and could remain underutilized
- Execution and regulatory risks in infra sector
How to Apply for Highway Infrastructure IPO?
Retail investors can apply through their demat account using UPI via brokers or banking apps that support ASBA (Application Supported by Blocked Amount). Minimum lot size is 211 shares, and the minimum investment is ₹ 13,715.
Highway Infrastructure IPO Review – Should You Subscribe or Avoid?
Highway Infrastructure IPO appears promising due to its diversified operations, healthy financials, and fair valuations. Though there are risks related to sectoral dependence and execution, long-term prospects look stable. Investors with high risk appetite may consider subscribing to this IPO for potential listing gains and long-term growth.
FAQs about Highway Infrastructure IPO
1. What are the Highway Infrastructure IPO dates?
The IPO opens on August 5, 2025, and closes on August 7, 2025.
2. What is the price band of Highway Infrastructure IPO?
The price band is set at ₹ 65 to ₹ 70 per share.
3. What is the minimum investment in Highway Infrastructure IPO?
Retail investors need to invest a minimum of ₹ 13,715 for one lot (211 shares).
4. Who are the promoters of the company?
Arun Kumar Jain, Anoop Agrawal, and Riddharth Jain are the promoters.
5. What is the Grey Market Premium (GMP) of this IPO?
As of August 1, 2025, the GMP is around ₹ 28 per share.
6. On which stock exchanges will the shares be listed?
The shares will be listed on BSE and NSE.
7. What are the objects of the issue?
Funds will be used to meet working capital requirements and for general corporate purposes.
Disclaimer: This article is for informational purposes only and not a recommendation to invest. Please consult a financial advisor before making investment decisions.
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While I am an ardent reader of your analysis and have been benefitted a number of times,I can’t take an investment decision when you qualify your analysis with the clause ‘Investors with high risk appetite can invest’ Nobody wants to lose money be he/she be high or low risk.I suggest you introduce a scale of 1to 5 to indicate the expected quality of issue.5 indicating safe and steady returns.1 indicating Avoid issue
Hello Ramakrishna, Investments in Stocks or IPO comes with immediately upside or downside risk, hence suitable for high risk investors only. This is not the case with mutual funds. Hence I always indicate that high risk ihvestors can invest in IPO. There are no IPOs that are moderate or low risk.