Highway Infrastructure IPO Day 1 Highlights: Issue booked 27x on first day; GMP signals 57% listing pop – Time to apply?

Highway Infrastructure IPO Day 1 Live: 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.

➢ Focused on tollway collection business

➢ Roads, flyovers, and bridge construction

➢ Order book of tollway collection, roads, flyovers, and bridge construction projects from various government agencies

➢ Strong execution capabilities with industry experience

➢ Experienced management team

Pending utilisation of the Offer Proceeds for the objects of the offer, the comapny shall deposit the funds only in Scheduled Commercial Banks included in the Second Schedule of the Reserve Bank of India Act, 1934. In accordance with Section 27 of the Companies Act, 2013, our company confirms that, pending utilisation of the proceeds of the Offer as described, it shall not use the funds from the Offer Proceeds for any investment in equity and/or real estate products and/or equity-linked and/or real estate-linked products, the company said in its RHP.

Highway Infrastructure IPO Day 1 Live: 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.

(Source: RHP)

- The company derives a significant portion of its revenue from operations through the tollway collection business, which is primarily undertaken for and awarded by the NHAI. Further, most of its revenue in the EPC Infra business comes from public sector customers. The loss of any of these contracts, particularly in the tollway collection business, may have a material and adverse effect on its business and financial results.

- The company’s business is relatively concentrated in certain specific parts of India, and any adverse development in such regions may negatively impact its business, results of operations, and financial condition.

- Contracts awarded by the NHAI are typically for a standard period of one year. These limited tenures, with restricted scope for extension or rollover, may limit revenue collection and materially affect the company’s business and operational performance.

- The company’s business is capital-intensive. If it experiences insufficient cash flows to meet debt obligations and fund working capital requirements, its operational results may be adversely affected.

-  The company’s Promoters and certain Key Managerial Personnel have interests in entities engaged in similar lines of business, including Group Companies with business objects similar to that of the company. Any conflicts of interest arising between the company’s business and the activities of these entities could adversely affect its business and prospects.

- The company has entered, and may continue to enter, into projects with related parties such as Group Companies and Subsidiaries, which could lead to potential conflicts of interest.

- Working capital management involves frequent and ongoing fund movements. Projected working capital represents funds in motion, which are difficult to monitor and may not always be used as anticipated.

-  Working capital projections are based on the management’s assumptions and estimated requirements. A substantial portion of the Offer Proceeds from the Fresh Issue is intended for working capital use. If the company is unable to secure alternate funding in Fiscal 2026 after the Net Proceeds are utilized, its operations may be adversely impacted.

Highway Infrastructure IPO Day 1 Live: Key growth drivers for toll traffic on national highways include infrastructure development, growth of national expressways, economic growth and trade, government policies and investments, technological advancements, improved connectivity, pick-up in tourism, and GPS-based technology. The outlook for toll traffic on national highways looks promising, showing a consistent upward trend in both the number of transactions and the derived revenue over the years.

Highway Infrastructure IPO Day 1 Live: The company earns revenue from its tollway collection, EPC infra and real estate businesses. Here's a breakdown.

Highway Infrastructure IPO Day 1 Live: The issue was subscribed 11.29 times so far on the first day of the bidding process. The retail segment was booked 13.79 times, NII segment 11.98 times and QIB segment 0.95 times.

Highway Infrastructure IPO Day 1 Live: Promoters Arun Kumar Jain and Anoop Agrawal will each be offering up to 2,320,000 equity shares with a face value of ₹5 in the Offer for Sale (OFS). 

Highway Infrastructure IPO Day 1 Live: Highway Infrastructure is an infrastructure development and management company. It is engaged in the business of tollway collection, EPC Infra, and real estate businesses. While the company’s business spans various facets of infrastructure development and management, tollway collection stands out as a significant part of its operations, driving revenues and financial performance. This is followed by the EPC Infra business, which comprises the execution of construction and development projects of different types such as roads, bridges, tanks, irrigation-related construction, and civil buildings for customers.

As on May 31, 2025, its consolidated order book stands at ₹6,663.07 million, comprising ₹595.30 million in the tollway collection business and ₹6,067.77 million in the EPC Infra business. Out of the consolidated revenue from operations for Fiscal 2025, the tollway collection business, EPC Infra business, and real estate development contributed 77.14%, 21.28%, and 1.58%, respectively.

Highway Infrastructure IPO Day 1 Live: Highway Infrastructure IPO was subscribed 5.92 times so far on the first day of the bidding process. In just over an hour, retail investor portion was booked 7.77 times, NII portion was booked 5.63 times and QIB quote 0.89 times.

Highway Infrastructure IPO Day 1 Live: The company plans to use the fresh funds ( ₹97.5 crore) raised for the following purposes: 

• Funding Working Capital requirements of the company
• General corporate purposes

Highway Infrastructure IPO Day 1 Live: Pantomath Capital Advisors Pvt Ltd is the book-running lead manager of the Highway Infrastructure IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

• Issue Size (Value in ₹ million, Upper Band): ₹1,300.0
• Fresh Issue (No. of Shares in Lakhs): 139.3
• Offer for Sale (No. of Shares in Lakhs): 46.4
• Bid/Issue Opens On: 5-Aug-25
• Bid/Issue Closes On: 7-Aug-25
• Face Value: ₹5
• Price Band: ₹65– ₹70
• Minimum Lot: 211 shares

Highway Infrastructure IPO Day 1 Live: Highway Infrastructure IPO sailed through in just 15 mins of opening. The issue was subscribed 1.67 times in the retail segment, and the non-institutional investor portion was subscribed 1.25 times. The qualified institutional buyer segment has not received any bids yet.

Highway Infrastructure IPO Day 1 Live: A look at the comparison of Highway Infrastructure with its listed peers in the Indian stock market.

Highway Infrastructure IPO Day 1 Live: Highway Infrastructure IPO opened for subscription on Tuesday, August 5. Investors can now apply for the issue till August 7. The IPO is commanding a strong GMP. 

At the upper price band, the company is valued at a 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 seems fully priced, and a “SUBSCRIBE – LONG TERM” recommendation is suggested.

• View by Anand Rathi

The company IPO has reserved not more than 30% of the shares in the public issue for qualified institutional buyers (QIB), not less than 30% for non-institutional Institutional Investors (NII), and not less than 40% of the offer is reserved for retail investors.