Highway Infrastructure, an infrastructure development and management company, is entering the capital markets with a ₹130.00 crore Book Built IPO opening on August 5, 2025. The company’s primary business spans tollway collection, EPC infrastructure, and real estate development, with toll operations contributing significantly to revenue.

The IPO comprises a fresh issue of ₹97.52 crores (139.31 lakh equity shares) and an offer for sale (OFS) of ₹32.48 crores (46.40 lakh equity shares). The price band is ₹65 to ₹70 per share, and shares will be listed on both BSE and NSE with a tentative listing date of August 12, 2025. The minimum investment for retail investors is ₹14,770, while HNIs must invest at least ₹2,06,780.

The Grey Market Premium (GMP) stands at ₹20, indicating an expected listing price of ₹90 per share — a 28.57% premium over the upper band. This suggests moderate market interest and listing gain potential.

Company Overview and Business Model

Highway Infrastructure operates across toll operations, engineering-procurement-construction (EPC), and real estate development, with tollway collections being the primary revenue driver. Its strategic focus on BOT and OMT contracts across India positions it strongly in the infrastructure segment.

Its business is supported by a seasoned leadership team:

• Arun Kumar Jain, Managing Director, drives company strategy and coordination.

• Anoop Agrawal, Whole-time Director & CFO, oversees finances and compliance.

• Ankit Tandon, CEO, handles execution, bidding, and project delivery.

Objectives of the IPO

The net proceeds from the IPO will be used as follows:

• ₹65 crores will go towards working capital requirements

• The balance will be used for general corporate purposes

Financial Performance at a Glance

Highway Infrastructure has shown stable financial performance over the past three years:

While FY25 revenue dipped slightly, profit margins improved, and EBITDA remained healthy, reflecting operational efficiency and cost control.

Key valuation metrics:

• Pre-issue EPS: ₹3.40

• Post-issue EPS: ₹2.74

• Pre-issue P/E: 20.58x

• Post-issue P/E: 25.52x

• Industry P/E: 29x

• ROCE (FY24): 16.56%

• ROE (FY24): 19.03%

• RoNW (FY24): 19.03%

These indicators reflect a balanced valuation and reasonable return metrics, particularly when compared to industry peers.

IPO Subscription and Timeline

Registrar: Bigshare Services Pvt Ltd
Book Running Lead Manager: Pantomath Capital Advisors Pvt Ltd

How to Check Allotment Status

Once the allotment is finalized, investors can check status on the registrar’s website:

1. Visit the IPO allotment page

2. Select Highway Infrastructure Limited IPO from the dropdown

3. Enter PAN / Application Number / DP Client ID

4. Submit to see your status

GMP Trend: Highway Infrastructure IPO

The steady GMP trend and positive listing expectations reinforce market interest in the stock.

Conclusion: Should You Subscribe to Highway Infrastructure IPO?

The IPO is moderately priced, considering its post-issue P/E of 25.52x against an industry average of 29x. With a stable financial track record, strong operating cash flows, and a ₹20 GMP suggesting healthy listing gains, this issue presents a compelling short-term opportunity.

While infrastructure companies carry operational and regulatory risks, investors looking for listing gains may consider applying. The leadership strength, financial growth, and expected 28.57% premium further enhance its appeal.

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 ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast, Highway Infrastructure.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem.

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.