Highway Infrastructure IPO: The Indian stock market is buzzing with excitement as the Highway Infrastructure IPO gears up to open for subscription on August 5, 2025. This initial public offering is grabbing headlines, and for good reason—it’s a chance to invest in a company deeply rooted in India’s booming infrastructure sector. With a grey market premium (GMP) signaling a potential 57% listing gain, investors are eager to know more. Let’s break down what this IPO is all about, why it matters, and whether it’s worth your attention.
Table of Contents
What is the Highway Infrastructure IPO?
Highway Infrastructure Limited, a Madhya Pradesh-based company founded in 1995, is launching its ₹130 crore IPO to fund its growth and strengthen its position in India’s infrastructure landscape. The IPO, open from August 5 to August 7, 2025, is a mix of a fresh issue of ₹97.52 crore and an offer for sale (OFS) of ₹32.48 crore by promoters Arun Kumar Jain and Anoop Agrawal. The price band is set at ₹65 to ₹70 per share, with a minimum lot size of 211 shares, meaning retail investors need at least ₹14,770 to apply.
The company operates in three key areas: tollway collection, engineering, procurement, and construction (EPC) projects, and real estate development. Toll collection is the star of the show, contributing 77% of its revenue, followed by EPC projects at 21%, with real estate making up the rest. With a robust order book of ₹666.3 crore as of May 2025, Highway Infrastructure is poised to capitalize on India’s infrastructure boom, driven by government initiatives like Bharatmala Pariyojana and the National Infrastructure Pipeline.
- Issue Size: ₹130 crore (₹97.52 crore fresh issue + ₹32.48 crore OFS)
- Price Band: ₹65–₹70 per share
- Lot Size: 211 shares (₹14,770 minimum investment for retail investors)
- Listing: BSE and NSE, tentative date August 12, 2025
- Lead Manager: Pantomath Capital Advisors Pvt Ltd
- Registrar: Bigshare Services Pvt Ltd
Why is the Infrastructure Sector Hot Right Now?
India’s infrastructure sector is on fire, and Highway Infrastructure is riding the wave. The government’s push for world-class roads, highways, and urban development has created a fertile ground for companies like this one. Programs like Bharatmala and the National Monetization Pipeline are pouring billions into road and highway projects, making infrastructure a darling of investors. Highway Infrastructure’s focus on toll collection, especially with advanced tech like Automatic Number Plate Recognition (ANPR) on the Delhi-Meerut Expressway, gives it a competitive edge.
The company’s diversified revenue streams—toll collection, EPC projects, and real estate—help it weather risks better than single-segment players. However, it’s not all smooth sailing. The company relies heavily on government contracts (91% of revenue), which can lead to elongated payment cycles and seasonal cash flow fluctuations. Still, with India’s infrastructure spending expected to grow, the long-term outlook for companies like Highway Infrastructure is promising.
- Government Support: Bharatmala and National Infrastructure Pipeline driving growth
- Tech Advantage: ANPR technology for efficient toll collection
- Diversified Portfolio: Toll collection, EPC, and real estate reduce reliance on one segment
Financial Health: Strengths and Red Flags
Before jumping into any IPO, it’s crucial to peek under the hood at the company’s financials. For FY25, Highway Infrastructure reported a net profit of ₹22.4 crore, up 4.6% from ₹21.41 crore in FY24, despite a 13% revenue drop to ₹504.48 crore from ₹576.58 crore. This profit growth, despite lower revenue, shows operational efficiency and contributions from other income sources. The company’s order book of ₹666.3 crore, with ₹606.8 crore from EPC projects and ₹59.5 crore from toll collection, signals strong future revenue potential.
However, there are some concerns. The company’s EBITDA margins of 6–7% are lower than larger peers like IRB Infrastructure and H.G. Infra Engineering. Its price-to-earnings (P/E) ratio of 18.06x at the upper price band is competitive, but the 3.44 price-to-book value suggests a premium valuation. Investors should also note the reliance on short-term toll contracts, which exposes the company to frequent bidding wars and competition.
- Profit Growth: 4.6% increase in net profit to ₹22.4 crore in FY25
- Revenue Dip: 13% decline to ₹504.48 crore in FY25
- Order Book: ₹666.3 crore, with 91% from EPC projects
- Valuation: P/E of 18.06x, but modest EBITDA margins of 6–7%
Should You Subscribe? Analyst Views and GMP Buzz
The Highway Infrastructure IPO has analysts divided. Some see it as a solid bet for listing gains and long-term growth, while others urge caution due to its valuation and operational risks. Shivani Nyati from Swastika Investmart gives it a “subscribe” rating, citing its strong order book and sector tailwinds, with a valuation of 18.06x FY25 earnings. Anand Rathi Research also recommends subscribing for the long term, noting the company’s niche in tollway and EPC projects. However, Gaurav Goel from Fynocrat Technologies warns that the 30x earnings multiple feels steep for a mid-sized player, and larger peers like IRB Infrastructure (P/E 44.38) and H.G. Infra (P/E 14) might offer better value.
The grey market premium is stealing the spotlight, hovering at ₹40–41, suggesting a listing price of around ₹110 per share—a potential 57% gain. The IPO was subscribed 7.47 times within hours of opening, with retail investors leading at 9.63 times, non-institutional investors at 7.14 times, and QIBs at 90%. This frenzy shows strong investor enthusiasm, but oversubscription could make allotment tricky.
- Analyst Ratings: Mixed—subscribe for listing gains (Swastika, Arihant) vs. avoid due to valuation (SBI Securities)
- GMP: ₹40–41, indicating a 57% listing pop
- Subscription: 7.47x overall, with retail at 9.63x
Tips for Investors: How to Approach the IPO
If you’re eyeing the Highway Infrastructure IPO, here are some practical tips to maximize your chances and make an informed decision. First, apply at the cut-off price (₹70) to stay eligible for the lottery-based allotment system. Monitor subscription trends on August 5 and 6 to gauge demand, especially from QIBs, as their participation often signals listing strength. Given the market’s volatility, assess your risk tolerance—while the GMP suggests short-term gains, the company’s long-term potential hinges on executing its order book and improving margins.
For retail investors, the minimum investment is manageable, but high-net-worth individuals (HNIs) will need to shell out ₹2,06,780 (small NII) or ₹10,04,360 (big NII). Compare Highway Infrastructure’s financials with peers like Larsen & Toubro or IRB Infrastructure to weigh its relative value. If you’re in for the long haul, the infrastructure sector’s growth story is compelling, but short-term investors might focus on the listing pop.
- Apply Smart: Use the cut-off price and monitor subscription trends
- Risk Assessment: Balance GMP hype with valuation and margin concerns
- Long-Term Play: Infrastructure sector growth makes it appealing for patient investors
In conclusion, the Highway Infrastructure IPO is a golden opportunity to tap into India’s infrastructure growth, backed by a company with a solid track record and a diversified portfolio. The strong GMP and subscription numbers point to a promising debut, but the modest margins and premium valuation call for caution. Whether you’re chasing listing gains or betting on long-term growth, do your homework, compare peers, and align your investment with your goals. The infrastructure sector is paving the way for India’s future—will you take the ride?