Highway Infrastructure IPO Opens August 5: Check GMP & Other Details - Should You Apply?

Madhya Pradesh-based tollway operator Highway Infrastructure is launching its Initial Public Offering (IPO) on Tuesday, August 5, 2025. The issue will remain open until Thursday, August 7, 2025, with shares expected to list on the stock exchanges on Tuesday, August 12. Investors who want to apply this IPO can plan their strategy.

Highway Infrastructure IPO Details:

The IPO will raise Rs 130 crore in total. Out of this, Rs 97.52 crore will come from issuing new shares, and Rs 32.48 crore will be raised through an offer-for-sale (OFS) by the promoters Arun Kumar Jain and Anoop Agrawal.

The price band for the IPO is set between Rs 65 and Rs 70 per share, and each share has a face value of Rs 5. The minimum investment for retail investors is one lot, which includes 211 shares, costing around Rs 14,770. The maximum investment allowed for retail investors is 13 lots, or 2,743 shares, which will cost Rs 1,92,010.

The IPO will be managed by Pantomath Capital Advisors Pvt Ltd, and Bigshare Services Pvt Ltd will act as the registrar.

The shares will be listed on both the BSE and NSE. The basis of share allotment will be finalized on August 8, and refunds will be processed on August 11. On the same day, shares will be credited to the investors' demat accounts.

Highway Infrastructure IPO GMP:

According to the grey market, the Highway Infrastructure IPO is generating strong interest. As of August 4, the grey market premium (GMP) is around Rs 40 per share. Based on the upper end of the IPO price band of Rs 70, this suggests a possible listing price of Rs 110 per share, which is 57.14% higher than the issue price.

However, it's important to note that GMP is not an official indicator and is based on speculation.

Use of IPO Proceeds:

The company plans to use Rs 65 crore from the IPO proceeds to meet its working capital needs, and the rest will go toward general corporate purposes. In terms of peer comparison, the company's listed competitors include IRB Infrastructure Developers, H.G. Infra Engineering, and Udayshivakumar Infra.

Highway Infrastructure Financials:

Highway Infrastructure reported a net profit of Rs 22.4 crore in FY25, which is a 4.6% increase compared to the previous year, even though the company's total revenue dropped by 13.6% to Rs 495.7 crore. This growth in profit was mainly due to other income and better operational efficiency.

The company's EBITDA rose by 13.1% to Rs 31.3 crore, and its EBITDA margin improved to 6.32%. As of May 2025, Highway Infrastructure had a strong order book of Rs 666.3 crore, which includes Rs 59.5 crore from toll operations and Rs 606.8 crore from EPC projects.

Should You Buy?

Brokerages do not seem to be much positive about the IPO. This IPO received mixed reviews on the subscription.

"At the upper price band, the company is valued at a FY25 P/E of 22.5x, with a post-issue market capitalization of Rs 5,020 million. It presents a niche opportunity in India's tollway and EPC infrastructure space, supported by consistent growth and a robust order book.

The use of ANPR (Automatic Number Plate Recognition) technology in toll systems provides a competitive advantage, while the combination of toll and EPC businesses offers diversified revenue streams. Considering these factors, the IPO seems fully priced, and a "SUBSCRIBE - LONG TERM" recommendation is suggested," said Anand Rathi.

While reviewing the IPO, IIFL and Capital Markets stayed away from recommending the IPO.

About Highway Infrastructure:

Founded in 1995, Highway Infrastructure is involved in building and managing infrastructure projects such as highways, toll booths, and real estate. It works across three main areas: toll collection, EPC (Engineering, Procurement, and Construction) projects, and real estate development.

The company has completed 24 toll projects and 63 EPC projects so far. It currently has seven toll projects and 20 EPC projects underway. Highway Infrastructure also uses modern toll collection technologies like RFID and ANPR. Its operations cover 11 Indian states and one union territory, with a workforce of nearly 400 employees.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.