Highway Infrastructure Limited is an established infrastructure development and management company, primarily engaged in tollway collection, EPC infra projects, and the real estate business. Among these segments, tollway collection plays a vital role in revenue generation and profitability, forming the core of its financial success.

The company is launching its initial public offering (IPO) via a Book Built Issue amounting to ₹130.00 Crores, comprising:

• A Fresh Issue of 139.31 lakh shares worth ₹97.52 Crores, and

• An Offer for Sale (OFS) of 46.40 lakh shares, amounting to ₹32.48 Crores.

The IPO subscription window opens on August 5, 2025, and closes on August 7, 2025. The allotment will be finalized on August 8, and shares will likely be listed on NSE and BSE on August 12, 2025.

Key IPO Details

• Price Band: ₹65 to ₹70 per equity share

• IPO Lot Size: 211 shares

• Retail Investor Minimum Investment: ₹14,770

• HNI Minimum Investment: 14 lots or 2,954 shares, totalling ₹2,06,780

• Market Capitalisation at Upper Price Band (₹70): ₹502.04 Crores

• Lead Manager: Pantomath Capital Advisors Private Limited

• Registrar: BIGSHARE SERVICES PVT LTD

Highway Infrastructure IPO GMP and Listing Expectation

The Grey Market Premium (GMP) is currently trending at ₹20, implying a 28.57% potential gain over the issue price. It suggests an expected listing price of ₹90 per share. However, investors must note that GMP is unofficial, unregulated, and speculative in nature. No real price discovery happens based on GMP, but it gives an informal indication of demand in the market.

Highway Infrastructure Financial Performance

The financials show consistent and healthy growth over three fiscal years:

This performance indicates that the company has solid fundamentals, growing revenue base, and strong profitability even in a challenging macroeconomic environment.

Important Valuation Metrics

• Pre-Issue EPS (FY24): ₹3.4

• Post-Issue EPS (FY24): ₹2.74

• Pre-Issue P/E: 20.58x

• Post-Issue P/E: 25.52x

• Industry Average P/E: 29x

• ROCE (FY24): 16.56%

• ROE / RoNW (FY24): 19.03%

These metrics show that the IPO is fairly valued, and returns on capital and equity are robust. It makes the IPO an attractive proposition for investors looking for listing gains as well as long-term potential.

Leadership and Management

The company is guided by a strong and experienced leadership team:

• Arun Kumar Jain, Managing Director – Oversees planning and coordination

• Anoop Agrawal, Whole-Time Director & CFO – Handles finance and new business development

• Ankit Tandon, CEO – Looks after bidding, execution, and delivery

This experienced team ensures that strategic and operational decisions align with long-term goals.

IPO Allotment and How to Check Status

Investors can check the IPO allotment status online from August 8, 2025. Here's how:

1. Visit the official registrar website

2. Select Highway Infrastructure Limited IPO from the dropdown

3. Enter PAN / Application Number / DP Client ID

4. Click Submit to view your allotment status

This process is simple and helps investors to track investments and plan further actions.

Use of IPO Proceeds

The net proceeds from the IPO will be primarily used for:

1. ₹650.00 Million towards working capital requirements

2. General corporate purposes

These objectives indicate that the company aims to strengthen operations and expand business activities post-IPO.

Final Verdict: Should You Apply?

Given the company’s:

• Strong financials and steady profit growth

• Reasonable valuation compared to peers

• GMP suggesting 28.57% listing gains

• Experienced leadership

• Fair use of proceeds

It appears that Highway Infrastructure IPO is well-placed for listing gains and has good long-term potential. While the grey market is not a formal indicator, the underlying business strength supports positive expectations.

Recommendation

We recommend applying for the Highway Infrastructure IPO for short-term listing gain as well as long-term investment opportunity, especially if subscribed at the upper price band.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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