Highway Infrastructure Limited has made a strong market debut, with its shares listing at a significant 67% premium on the Bombay Stock Exchange (BSE) at ₹117 per share and a 60% premium on the National Stock Exchange (NSE) at ₹115. The listing also witnessed the share price hitting the 5% upper circuit, reflecting robust investor confidence in the company’s prospects and underlying business model. The company’s Initial Public Offering (IPO) was oversubscribed an impressive 316.64 times, showcasing massive demand across retail investors, Non-Institutional Investors (NII), and Qualified Institutional Buyers (QIB).

The IPO raised a total of ₹130 crores, consisting of a fresh issue of 139.31 lakh shares worth ₹97.52 crores and an offer for sale of 46.40 lakh shares amounting to ₹32.48 crores. The funds raised will primarily be used to support the company's working capital requirements and general corporate purposes, bolstering its capacity to execute ongoing and new infrastructure projects efficiently.

Highway Infrastructure Limited operates as a comprehensive infrastructure development and management company. Its core businesses include tollway collection, engineering, procurement, and construction (EPC) infrastructure, and real estate development. Among these verticals, tollway collection is the most significant revenue driver, supported by advanced technologies such as Automatic Number Plate Recognition (ANPR) and Electronic Toll Collection (ETC) systems. These technologies, coupled with the use of RFID-based FASTag, enable seamless and contactless toll collection across multiple expressways. The company’s toll operations span 11 states and one Union Territory, with notable projects including the Delhi-Meerut Expressway.

The IPO was launched with a price band set between ₹65 and ₹70 per equity share. The company's market capitalization at the upper end of the price band is estimated at approximately ₹502 crores. The IPO lot size was fixed at 211 shares, making the minimum retail investment ₹14,770, while High-Net-Worth Individuals (HNIs) were required to invest in multiples of 14 lots, totaling ₹2,06,780.

The IPO subscription saw active participation, with the final day alone recording a subscription of 106.43 times as per the latest update. The company also secured ₹23.39 crores from anchor investors who subscribed at the upper price band, demonstrating strong institutional confidence in the company’s growth potential.

The IPO Grey Market Premium (GMP) was observed at ₹20, indicating a 28.57% premium over the IPO price, a typical reflection of strong market interest ahead of the formal listing. While GMP does not represent official trading prices, it often serves as an informal indicator of demand and investor sentiment in the pre-listing phase.

Highway Infrastructure’s tollway collection business has a significant competitive edge with its use of cutting-edge ANPR technology and the extensive use of the government-mandated FASTag digital payment system. The FASTag initiative, introduced to facilitate electronic toll payments, has seen explosive adoption in India, with over 110 million FASTags issued as of May 2025, and total toll collections reaching ₹71 billion in the financial year 2024-25. This shift towards digital toll collection not only enhances revenue visibility but also improves operational efficiency by reducing congestion at toll plazas.

The EPC Infra segment complements the company’s toll operations by undertaking various infrastructure projects including roads, bridges, irrigation systems, and public infrastructure projects. With a consolidated order book of ₹6,663 million, a majority of which stems from ongoing EPC projects, the company enjoys solid financial visibility and execution capabilities across diverse geographies such as Madhya Pradesh, Gujarat, Andhra Pradesh, Punjab, Maharashtra, and Delhi.

Government initiatives such as the Toll-Operate-Transfer (TOT) model have bolstered the tolling sector’s growth by enabling private players like Highway Infrastructure to acquire long-term toll collection rights in exchange for upfront payments. This model has attracted global pension and sovereign funds, providing stable, long-term revenue streams to operators and aiding infrastructure development across India.

Despite the promising outlook, Highway Infrastructure faces certain risks typical of the infrastructure sector. These include revenue concentration risks due to dependence on contracts awarded by the National Highways Authority of India (NHAI), geographic concentration risks, and short contract tenures in toll collection which can lead to revenue uncertainties. Additionally, the EPC segment faces challenges related to land acquisition and clear title issues which can delay project execution and affect profitability.

Overall, Highway Infrastructure’s successful IPO listing at a premium and the company’s solid fundamentals in tollway operations, EPC infrastructure, and strategic real estate development position it well to capitalize on India’s rapidly expanding road infrastructure sector. The strong market response reflects investor confidence in the company’s technology-driven toll collection, extensive operational footprint, and growth prospects fueled by government infrastructure initiatives.

The Highway Infrastructure IPO story highlights how a company combining technology leadership, diversified infrastructure services, and strategic market positioning can attract substantial investor interest and deliver promising listing gains. As India’s road network continues to grow and digital tolling gains further momentum, companies like Highway Infrastructure are poised to benefit significantly from the country’s infrastructure growth story.

The Upcoming IPOs in this week and coming weeks are Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ANB Metal Cast.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.