Highway Infrastructure IPO Day 2 Highlights: GMP signals 54% listing pop — Issue booked over nearly 73 times

Highway Infrastructure IPO Day 2 Live: Issue was booked 72.92 times at the end of the second day. The QIB portion was subscribed 7.10 times, the NII quota 97.70 times and the retail portion 73.55 times.

• Focused on tollway collection business.
• Order book of tollway collection, roads, flyovers, and bridge construction projects from various government agencies.
• Strong execution capabilities with industry experience.
• Experienced management team.

Here are the details of shareholders holding 1% or more of the pre-offer paid-up equity share capital of the company as on the date of filing of this Red Herring Prospectus.

Highway Infrastructure IPO Day 2 Live: Highway Infrastructure IPO was subscribed 65 times so far. Here's the segment-wise breakdown:

QIB: 6.30 times

NII: 85.26 times

Retail: 67.23 times

50% of the equity shares allotted to anchor investors in the Anchor Investor Portion shall be locked in for a period of 90 days from the date of allotment, while the remaining 50% shall be locked in for a period of 30 days from the date of allotment.

Highway Infrastructure IPO Day 2 Live: According to the Red Herring Prospectus, the Promoters of the company are:

1. Arun Kumar Jain

2. Anoop Agrawal

3. Riddharth Jain

Collectively, the Promoters hold 46,801,548 equity shares of face value ₹5/- each, representing 80.99% of the issued, subscribed, and paid-up Equity Share Capital of the company.

Highway Infrastructure IPO Day 2 Live: According to the RHP, Highway & Tandon Tollways Private Limited (HTTPL) is the subsidiary of our company. 

HTTPL is engaged in the collection of tolls, cess, and service charges on roads and highways at designated entry points.

In addition to toll collection, HTTPL also undertakes construction and development of various infrastructure projects for governmental, semi-governmental, corporate, and individual clients. These projects include the development of:

• Roadways
• Bridges
• Dams
• Docks
• Harbors
• Canals
• And other related infrastructure works

Highway Infrastructure IPO Day 2 Live: Issue subscribed 51.14 times so far on the second day of the bidding process. The retail portion was booked 54.22 times, the NII portion 64.80 times and the QIB quote 5.45 times.

2012: Our Company was certified as a member of the Confederation of Real Estate Developers’ Association of India (CREDAI), it said in the RHP.

2018: The company was awarded the status of Patron Member of the Builders Association of India, Indore.

• 2012

Entered into a joint development agreement for the construction and development of a colonial area on company-owned land—‘Karuna Sagar Project’, measuring 2.689 hectares (6.64 acres), situated at Kanadia Road, Indore, Madhya Pradesh.

2013

Commenced construction and development of the ‘Newwyork City Project’ on company-owned land measuring 5.2510 hectares (12.987 acres), located in Village Nihalpur, Indore, Madhya Pradesh.

• 2018

Converted from a Private Limited Company to a Public Limited Company.

Name changed from “Highway Infrastructure Private Limited” to “Highway Infrastructure Limited”.

Constructed houses and infrastructure across various slum localities in Indore under the PMAY (Pradhan Mantri Awas Yojana) scheme to support affordable housing.

• 2020

Executed the company’s first toll collection project at Daroda Fee Plaza on the Borkhedi–Wadner Section of NH-7 in Maharashtra.

• 2021

Won the tender to manage user fee collection at the Mokha Fee Plaza, part of the Gandhidham (Kandla)–Mundra Port road, Gujarat.

• 2023

Deployed ANPR (Automatic Number Plate Recognition) technology at toll plazas on the Delhi–Meerut Expressway, becoming an early adopter of advanced tolling systems.

• 2024

Secured a tollway collection project in Rolla Village, Telangana, marking the company’s first operational entry into Southern India.

Highway Infrastructure IPO Day 2 Live: Pantomath is the book-running lead manager to the issue, while Bigshare Services is the registrar to the issue.

• Funding Working Capital requirements of the company.

• General corporate purposes.

Highway Infrastructure IPO Day 2 Live: At the upper price band, the company is valued at an FY25 P/E of 22.5x, with a post-issue market capitalization of ₹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 appears fully priced, and a “SUBSCRIBE – LONG TERM” recommendation is suggested.

Highway Infrastructure IPO Day 2 Live: The issue was booked 32x so far on the second day of the bidding process. Here's how different quotas were booked:

QIB: 5.04x

NII: 40.54x

Retail: 33.85x

The bidding for Highway Infrastructure IPO opened for the second day. The issue witnessed solid demand on first day, managing to sail through within 15 mins. 

Investors can apply for the IPO today, with the issue set to close tomorrow.

Highway Infrastructure IPO Day 2 Live: The issue is priced in the range of ₹65-70 per share. Investors can apply for the Highway Infrastructure IPO for 211 shares in one lot and multiples thereof. 

Highway Infrastructure IPO Day 2 Live: Highway Infrastructure IPO is a mix of fresh share sale of ₹97.5 crore and an offer for sale of ₹32.5 crore. The company is looking to raise a total of ₹130 crore.

At the end of the first day of the bidding process, the Highway Infrastructure IPO was subscribed 27.04 times. The issue witnessed bids for 43,38,14,101 shares as against 1,60,43,046 shares on offer. The retail portion was subscribed 28.69 times, the NII portion 33.45 times and the QIB portion 4.92 times.

Highway Infrastructure IPO GMP today is +38. This indicates Highway Infrastructure share price were trading at a premium of ₹38 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Highway Infrastructure share price was indicated at ₹108 apiece, which is 54.29% higher than the IPO price of ₹70.

According to the grey market activities over the past 13 sessions, the IPO GMP is trending upward today and is anticipated to have a robust listing. The minimum GMP recorded is ₹0.00, while the maximum GMP is ₹40, as noted by experts from investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.