Introduction: Is the Highway Infrastructure IPO a Road to Riches or a Speed Bump?
India’s infrastructure sector is shifting gears, and investors are watching closely. In the midst of this momentum, a new contender has entered the fast lane — the Highway Infrastructure IPO. Scheduled to open in August 2025, this IPO isn’t just about roads and toll booths; it’s about capitalizing on India’s long-term growth story through a company that’s been laying down concrete — literally and figuratively — since 1995.
But before you rush to hit the apply button, ask yourself: Is this IPO the expressway to gains or a detour to disappointment?
In this blog, we’ll break down everything you need to know about the Highway Infrastructure IPO — from its business model and financials to risks, opportunities, and how it stacks up against industry peers. So buckle up — let’s take this IPO for a spin.
IPO Details: A Quick Look at the Highway Infrastructure IPO
Before diving deep into valuations and business fundamentals, here’s a crisp snapshot of the Highway Infrastructure IPO — from issue size and pricing to listing plans. It’s a mix of fresh equity and offer for sale, aiming to raise ₹130 crore from the capital markets.
Key Highlights
| Particular | Details |
|---|---|
| IPO Name | Highway Infrastructure IPO |
| Issue Type | Book Building |
| Total Issue Size | ₹130 crore |
| Fresh Issue | ₹97.52 crore (1.39 crore shares) |
| Offer for Sale | ₹32.48 crore (0.46 crore shares) |
| Price Band | ₹65 – ₹70 per share |
| Face Value | ₹5 per share |
| Lot Size | 211 shares |
| Minimum Investment (Retail) | ₹14,770 |
| Listing Exchange | BSE, NSE |
| Lead Manager | Pantomath Capital Advisors Pvt Ltd |
| Registrar | Bigshare Services Pvt Ltd |
IPO Timeline: Important Dates to Know
If you’re planning to apply for the Highway Infrastructure IPO, timing is everything. Here’s the schedule you need to keep on your radar:
| Event | Date |
|---|---|
| IPO Opens | August 5, 2025 (Tuesday) |
| IPO Closes | August 7, 2025 (Thursday) |
| Allotment Finalization | August 8, 2025 (Friday) |
| Refund Initiation | August 11, 2025 (Monday) |
| Shares Credited to Demat | August 11, 2025 (Monday) |
| Tentative Listing Date | August 12, 2025 (Tuesday) |
| UPI Mandate Cut-Off Time | 5 PM, August 7, 2025 |
IPO Objectives: Why Highway Infrastructure Is Raising Funds
The Highway Infrastructure IPO is not just a capital-raising event — it’s part of the company’s growth strategy. The net proceeds from the fresh issue will primarily be used for:
- ✅ Meeting working capital requirements (₹65 crore)
- ✅ General corporate purposes
These objectives suggest that the company is gearing up to accelerate execution across its EPC and toll operations — potentially translating into stronger topline growth.
Company Overview: Inside the Engine of the Highway Infrastructure IPO
At the heart of the Highway Infrastructure IPO is a company that has quietly built a strong foundation across India’s physical and digital road networks. Highway Infrastructure Ltd. (HIL) is not your average construction player — it blends traditional EPC capabilities with advanced toll management technologies and a touch of real estate development.
Established in 1995, HIL has evolved into a multi-segment infrastructure development and management company. But make no mistake — tollway collection and EPC infra projects are the lifeblood of its business, contributing over 98% of operational revenue in FY25.
Tollway Collection: Where It All Started
Toll collection is HIL’s flagship business — both in terms of revenue and operational strength. As of May 31, 2025, the company has:
- ✅ Completed 27 toll projects
- ✅ Operating 4 active tollway projects
- ✅ ₹595.30 million order book in tollway operations
What makes HIL stand out is its adoption of ANPR (Automatic Number Plate Recognition) technology — notably used on the Delhi-Meerut Expressway — along with RFID-based ETC systems for seamless tolling. These digital-first systems reduce congestion, speed up transactions, and improve operational efficiency.
This segment contributed a massive 77.14% to FY25 revenue, underlining its dominance.
With the Indian government mandating FASTag and monetizing highways through the TOT (Toll-Operate-Transfer) model, the toll sector is seeing unprecedented momentum. As of May 2025, India issued over 110 million FASTags, and toll collections reached a record ₹71 billion, further strengthening the outlook for players like HIL.
EPC Infra: Building More Than Just Roads
While tolls bring recurring revenue, the EPC Infra segment is where HIL gets to flex its construction muscle. From highways and bridges to tanks and irrigation infrastructure, this business serves both government projects and private clients like Shubham Builders and Adroit Associates.
Key EPC milestones as of May 31, 2025:
- 🔨 66 completed projects
- 🏗️ 24 under execution
- 🏁 4 pending completion certificate
With a robust ₹6,067.77 million order book, current projects span cities across Madhya Pradesh, including Indore, Bhopal, Ratlam, and Khandwa. HIL has also executed works under flagship government schemes like PMAY, PMGSY, and Jal Jeevan Mission.
In FY25, EPC contributed 21.28% to total revenue — a solid second pillar behind toll operations.
Real Estate: A Niche Side Hustle
Though not a focus, HIL’s real estate division adds another layer to its diversified portfolio. The company has developed gated communities and residential complexes, albeit at a much smaller scale. In FY25, this segment brought in just ₹78.19 million, or 1.58% of revenue — clearly taking a back seat to its infra-heavy core.
The Backbone: A Strong Order Book & Skilled Workforce
As of May 31, 2025, the company boasts a total order book worth ₹6,663.07 million, heavily skewed toward EPC. This pipeline, combined with an in-house team, cost-competitive bidding strategies, and investment in technology, positions HIL well to execute larger, more complex projects in the coming years.
Bottom Line
The Highway Infrastructure IPO isn’t just about raising funds — it’s about scaling a business that’s already embedded in India’s road and infrastructure backbone. With toll operations driving stable cash flows and EPC projects powering expansion, HIL offers a dual-engine business model that blends operational reliability with growth potential.
Financial Performance: Is the Highway Infrastructure IPO Built on Solid Numbers?
When evaluating an IPO, numbers tell the real story. In the case of the Highway Infrastructure IPO, the financials reflect a company that has maintained profitability, managed its resources efficiently, and continues to build a stable growth path within the infrastructure space.
Let’s break down the performance to understand whether the fundamentals support the investment thesis.
Revenue Trends: Minor Volatility, Stable Profitability
| Financial Year | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
|---|---|---|---|
| FY23 | 456.83 | 13.80 | 27.69 |
| FY24 | 576.58 | 21.41 | 38.44 |
| FY25 | 504.48 | 22.40 | 31.32 |
Despite a dip in revenue in FY25, the company managed to grow its profit after tax by 5% year-on-year. This suggests solid cost management and operational control, especially in a sector known for execution delays and budget overruns.
The temporary decline in revenue could be attributed to project timing rather than a decline in core business performance.
Conclusion: Profit growth despite revenue contraction signals operational strength and financial discipline.
Profitability & Efficiency Metrics
| Metric | Value |
|---|---|
| PAT Margin | 4.44% |
| EBITDA Margin | 6.32% |
| Return on Equity (ROE) | 19.03% |
| Return on Capital Employed | 16.56% |
| Debt-to-Equity Ratio | 0.61 |
| Price-to-Book Value (P/BV) | 3.44x |
| Post-IPO Price-to-Earnings | 22.41x |
The return ratios are solid, especially for a mid-sized infrastructure company. The relatively low debt-to-equity ratio indicates prudent financial management, allowing room for future debt-funded growth if needed. Valuation-wise, the IPO is priced at a modest premium but not excessive for the sector.
Revenue Composition by Business Segment (FY25)
| Business Segment | Revenue (₹ Mn) | Contribution to Total Revenue |
|---|---|---|
| Tollway Collection | 3,824.07 | 77.14% |
| EPC Infra Projects | 1,054.89 | 21.28% |
| Real Estate | 78.19 | 1.58% |
Toll operations remain the core revenue generator, followed by EPC infrastructure contracts. Real estate plays a very minor role, which helps maintain strategic focus on the company’s infrastructure roots.
Balance Sheet Overview (FY25)
| Key Metric | Value (₹ Cr) |
|---|---|
| Total Assets | 231.56 |
| Net Worth | 117.72 |
| Total Borrowing | 71.82 |
| Reserves & Surplus | 83.90 |
The balance sheet remains well capitalized. The borrowing level appears manageable, and the company has built a strong reserve base over time — a positive indicator for long-term investors.
Overall Assessment
- Profit margins and return ratios are healthy for the infrastructure sector.
- Despite revenue fluctuation, the company has consistently grown profits.
- Leverage is under control, giving it operational flexibility.
- The revenue model is dominated by toll and EPC income, ensuring focus and clarity.
Final Word on Financials
The financial picture of the Highway Infrastructure IPO suggests a company that is not chasing aggressive expansion, but one that is scaling steadily and managing its capital wisely. For investors looking for consistency and defensible cash flows in the infrastructure space, these numbers reflect a reasonably attractive proposition.
Valuation & Peer Comparison: Where Does the Highway Infrastructure IPO Stand?
For any investor, knowing how a company stacks up against its listed peers is essential — not just to judge its valuation, but also to evaluate the potential for returns relative to market expectations. The Highway Infrastructure IPO is priced in a range that reflects confidence in its business model but also invites comparisons with more established players in the sector.
Let’s examine where it fits in.
IPO Valuation Snapshot
| Metric | Value (Post-IPO) |
|---|---|
| Market Capitalization | ₹502.04 crore |
| EPS | ₹3.12 |
| Price-to-Earnings (P/E) | 22.41x |
| Net Asset Value (NAV) | ₹20.37 |
| Price-to-Book (P/BV) | 3.44x |
| Return on Net Worth (RoNW) | 19.03% |
With a post-IPO P/E ratio of 22.41x, Highway Infrastructure Ltd is valued slightly above the sector average for mid-sized infrastructure companies but below some of the large-cap giants. Its RoNW of 19.03% supports this valuation — reflecting both capital efficiency and consistent profitability.
Peer Comparison
| Company Name | EPS (₹) | P/E Ratio | NAV (₹) | RoNW (%) |
|---|---|---|---|---|
| Highway Infrastructure Ltd | 3.12 | 22.41x | 20.37 | 19.03% |
| Udayshivakumar Infra | -1.18 | NA | 30.43 | -4.28% |
| IRB Infrastructure Developers | 1.12 | 44.38x | 32.83 | 32.69% |
| H.G. Infra Engineering | 75.04 | 14.00x | 452.62 | 17.13% |
Compared to Udayshivakumar Infra, Highway Infrastructure is far more stable and profitable. Against larger peers like IRB Infrastructure and H.G. Infra, the company is smaller in scale but shows competitive return ratios.
The P/E ratio of 22.41x may appear high relative to H.G. Infra’s 14x, but it reflects investor expectations for growth in toll-based revenues and a recurring income stream — areas where HIL has a proven track record.
Is the Valuation Justified?
The valuation of the Highway Infrastructure IPO sits in the middle tier of the sector — not aggressively priced, but not a deep value pick either. The premium reflects:
- A solid track record in toll operations
- Efficient cost control and profitability
- Healthy return ratios despite being a mid-cap player
- Long-term opportunity from government focus on road monetization and infrastructure spending
That said, the company still has room to scale, and investors may want to consider whether the current price factors in enough margin for growth and market risk.
Final Thoughts on Valuation
The Highway Infrastructure IPO is entering the market at a valuation that balances ambition with realism. It may not be a bargain-bin IPO, but for investors seeking stable earnings and participation in India’s long-term infrastructure expansion, it offers reasonable value — especially when compared to smaller or riskier peers.
Strengths & Risks of Highway Infrastructure IPO
| Strengths | Risks |
|---|---|
| Diversified Business Model across toll collection, EPC infra, and real estate segments | Revenue Dependency on Toll Collection, which contributed over 77% of FY25 operating revenue |
| Strong Order Book of ₹666.30 crore as of May 31, 2025 | Regulatory Risks, especially in toll operations tied to government policies and FASTag mandates |
| Proven Execution Track Record with 66 completed EPC projects and 27 tollway projects completed | Limited Toll Projects in Operation — only 4 active tollway collection projects as of May 2025 |
| Use of Technology such as ANPR and RFID-enabled ETC systems for efficient tolling | High Competition in bidding for EPC contracts and toll concessions |
| Experienced Promoters and established industry presence since 1995 | Real Estate Segment Underperformance, contributing less than 2% to revenue |
| Healthy Return Ratios like RoNW of 19.03% and ROCE of 16.56% | Moderate Debt Load (Debt/Equity ratio at 0.61) that could limit aggressive expansion |
Grey Market Premium (GMP) Trend of Highway Infrastructure IPO
The Highway Infrastructure IPO is attracting notable interest in the grey market, reflecting early investor sentiment even before the official listing. Grey Market Premium (GMP) gives an unofficial indication of how the stock might list based on demand in the informal market.
Highway Infrastructure IPO Day-Wise GMP Trend
| GMP Date | IPO Price | GMP | Estimated Listing Price | Estimated Profit* |
|---|---|---|---|---|
| 26-07-2025 | ₹70.00 | ₹14 (GMP Up Today) | ₹84 (20.00% gain) | ₹2,954 |
*Estimated profit is based on 1 lot (211 shares)
A GMP of ₹14 indicates a potential listing gain of around 20%, which is considered attractive in current market conditions. However, investors should remember that grey market data is unofficial and speculative — it’s best used as one of several factors in decision-making.
Should You Invest in the Highway Infrastructure IPO?
The Highway Infrastructure IPO offers a mix of fundamentals, market buzz, and sectoral tailwinds. Whether you’re in for a quick listing pop or thinking long-term, here’s a breakdown tailored to your strategy:
Listing Gain & Allotment Strategy
With a current GMP of ₹14 over the upper price band of ₹70, the IPO is indicating a potential 20% listing gain. That puts this IPO on the radar of retail investors aiming for quick profits.
- Retail Strategy: Apply with a single lot (₹14,770) across multiple PANs (friends/family) to improve allotment chances.
- Risk Note: GMP is not guaranteed; market sentiment can change quickly before listing.
Verdict: Reasonable listing gains are expected, but oversubscription could reduce allotment chances.
Short-Term Strategy (Post-Listing 1–3 Months)
The infra sector often sees post-listing momentum, especially when backed by government initiatives and a strong order book — both of which Highway Infrastructure Ltd. boasts.
- Catalysts: ₹666 crore order book, strong FY25 revenue mix, and high public infrastructure spending.
- Watchouts: Limited toll projects in current operation (only 4 live) may affect near-term revenue realization.
Verdict: Short-term investors may benefit from post-listing momentum if broader markets remain stable.
Long-Term Strategy (1+ Year Outlook)
For long-term investors, the IPO presents a mixed bag. On the one hand, there’s consistent profitability, decent return ratios (RoNW 19.03%, ROCE 16.56%), and a growing EPC business. On the other hand, the heavy reliance on toll income and regulatory exposure pose structural risks.
- Positives: PAN-India operations, ANPR/FASTag tech adoption, consistent PAT growth, and expanding infra footprint.
- Concerns: Real estate segment remains a laggard; scaling up active toll ops is needed for long-term value unlocking.
Verdict: Suitable for long-term investors with moderate risk appetite, especially if management delivers on EPC project execution and diversification.
The Highway Infrastructure IPO combines sector potential with solid execution history — whether you’re chasing a listing pop or building a long-term infra play, it’s an offering worth a closer look.
FAQs on Highway Infrastructure IPO
1. What is the Highway Infrastructure IPO?
Highway Infrastructure IPO is a ₹130 crore book-built issue comprising a fresh issue of ₹97.52 crore and an offer for sale of ₹32.48 crore.
2. What are the Highway Infrastructure IPO dates?
The IPO opens on August 5, 2025, and closes on August 7, 2025. Listing is tentatively scheduled for August 12, 2025.
3. What is the price band for Highway Infrastructure IPO?
The price band is set at ₹65 to ₹70 per share.
4. What is the lot size for Highway Infrastructure IPO?
Retail investors can apply for a minimum of 211 shares (1 lot), requiring an investment of ₹14,770.
5. How much is reserved for retail investors in the IPO?
40% of the net offer is reserved for retail investors.
6. Who are the promoters of Highway Infrastructure Ltd.?
The promoters are Arun Kumar Jain, Anoop Agrawal, and Riddharth Jain.
7. What is the business of Highway Infrastructure Ltd.?
The company operates in tollway collection, EPC infra projects, and real estate. Tollway operations form the major revenue segment.
8. What is the GMP (Grey Market Premium) for Highway Infrastructure IPO?
As of July 26, 2025, the GMP is ₹14, indicating a potential 20% listing gain.
9. Should I apply for listing gains or long-term investment?
With strong fundamentals and decent GMP, it may suit both listing gain seekers and long-term investors with a moderate risk appetite.
10. Who is the registrar for Highway Infrastructure IPO?
Bigshare Services Pvt Ltd is the registrar, and Pantomath Capital Advisors Pvt Ltd is the lead manager.
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