Introduction: A Speedy Start for Highway Infrastructure IPO
The initial public offering (IPO) of Highway
Infrastructure Limited kicked off with remarkable enthusiasm on Day 1. The
offer was fully subscribed within the first hour of opening, highlighting
strong investor confidence in the company.
Among all investor segments, retail investors
took the spotlight by showing the highest level of participation. With grey
market activity signaling strong demand and positive sentiment, this IPO has
become one of the most talked-about listings this week.
Let’s break down everything you need to know about the IPO in plain English.
IPO Summary: Key Details You Should Know
Here's a quick overview of the IPO's main
features:
| Feature | Details |
|---|---|
| Issue Size | ₹130 crore |
| Price Band | ₹65 – ₹70 per share |
| Lot Size | 211 shares per lot |
| Minimum Investment | ₹14,770 (1 lot at ₹70 per share) |
| Issue Type | Fresh Issue + Offer For Sale |
| Listing Date | August 12, 2025 |
| Exchanges | NSE and BSE (Mainboard Listing) |
The IPO includes a fresh issue of ₹97.52 crore and an offer for sale (OFS) worth ₹32.48 crore by existing shareholders.
Day 1 Subscription Status: How Investors
Responded
By mid-morning on Day 1, the IPO was
oversubscribed 6.29 times in total.
Category-Wise Subscription Breakdown:
| Highway Infrastructure IPO – Key Details | |
|---|---|
| Issue Size | ₹130 crore |
| Price Band | ₹65 – ₹70 per share |
| Lot Size | 211 shares per lot |
| Minimum Investment | ₹14,770 (1 lot at ₹70 per share) |
| Issue Type | Fresh Issue + Offer For Sale |
| Listing Date | August 12, 2025 |
| Exchanges | NSE and BSE (Mainboard Listing) |
| IPO Subscription Status – Day 1 | |
|---|---|
| Investor Category | Subscription |
| Retail Individual Investors (RIIs) | 8.24× |
| Non-Institutional Investors (NIIs) | 5.80× |
| Qualified Institutional Buyers (QIBs) | 0.90× |
Retail participation was the highest, oversubscribing the category by more
than eight times. This suggests strong interest from individual investors and
traders.
Even though the QIB category wasn’t fully subscribed by the end of Day 1, institutional interest is expected to rise before the closing day of the IPO.
What Is the Company All About?
Highway Infrastructure Limited is involved in
the development, operation, and maintenance of road infrastructure projects.
The company’s key activities include:
·
Toll collection from national and state highways
·
Engineering, procurement, and construction (EPC)
of roads and bridges
·
Use of modern tech like ANPR (Automatic Number
Plate Recognition)
The company operates across multiple states in India and aims to improve logistics and road connectivity through quality infrastructure.
Financial Performance: A Quick Look
Here’s how the company has performed
financially over the last two years:
| Financial Metric | FY25 | FY24 |
|---|---|---|
| Total Revenue | ₹504.48 crore | ₹576.58 crore |
| Net Profit | ₹22.40 crore | ₹21.41 crore |
| EBITDA Margin | Improved YoY | Moderate |
| Market Capitalization | ₹502 crore (approx) | N/A |
The revenue dropped slightly compared to the previous year, but the net profit improved. This shows that the company managed its costs well and became more efficient despite the dip in total income.
Use of IPO Proceeds
The proceeds from the fresh issue will be used
for:
·
Meeting working capital requirements
·
General corporate purposes
·
Strengthening the company's balance sheet
The OFS portion will go to the selling shareholders.
Anchor Investment: Pre-IPO Confidence Boost
Before opening to the public, the company
raised ₹23.4 crore from four institutional investors through an anchor book
placement.
Key institutions that invested:
·
A global venture fund with ~₹8.4 crore
·
A large private bank and other finance companies
investing ~₹5 crore each
Anchor investors locking in funds at ₹70 per share indicates early confidence in the company's business model and valuation.
Grey Market Premium (GMP): What’s the Buzz?
As of Day 1, Highway Infrastructure’s shares
were trading at ₹110 in the grey market. This is ₹40 above the IPO’s upper
price band of ₹70 per share, showing a 57% grey market premium.
While grey market trading is unofficial and
unregulated, a strong GMP often reflects high investor expectations for listing
gains.
However, one should not rely solely on GMPs. These figures can fluctuate depending on broader market sentiment, liquidity, and news.
Why Is Retail Interest So High?
Several factors explain the strong demand from
retail investors:
1.
Affordable
Pricing: The ₹14,770 entry point made it accessible to many retail
investors.
2.
High GMP:
A 57% premium in the grey market attracted traders looking for listing gains.
3.
Stable
Financials: Despite a revenue dip, consistent profit growth created
trust.
4.
Sector Potential:
Infrastructure development remains a top priority in India’s economic growth strategy.
5. Anchor Support: Participation by reputed institutional investors added credibility.
Expert View: Should You Consider Applying?
While the IPO is already fully subscribed, the
remaining two days might see even stronger participation, especially from QIBs.
Strengths:
·
Dual business model (Toll + EPC)
·
Positive net profit for consecutive years
·
Technological advancements like ANPR
·
Growing order book worth ₹666 crore
·
Strong retail and anchor interest
Risks:
·
Slight decline in revenue YoY
·
Dependency on government infrastructure projects
·
Competitive bidding pressure in the EPC space
·
Fluctuating toll revenues due to macro factors
It’s important to look at both the opportunity and associated risks before making your final investment decision.
Order Book Snapshot
As of May 2025, Highway Infrastructure has an
order book of ₹666.3 crore.| Segment | Order Value |
|---|---|
| Toll Operations | ₹59.5 crore |
| EPC Contracts | ₹606.8 crore |
The EPC division makes up over 90% of the total order book, showcasing its importance to future growth.
Timeline: What Happens Next?
| Event | Date |
|---|---|
| IPO Open | August 5, 2025 |
| IPO Close | August 7, 2025 |
| Allotment Finalization | August 8, 2025 |
| Refunds Start | August 9, 2025 |
| Shares Credited (Demat) | August 11, 2025 |
| Listing Date | August 12, 2025 |
Investors should keep an eye on these dates to track allotment status and listing performance.
Potential Listing Price Estimate
Based on the current GMP of ₹40, the expected
listing price could be:
₹70
(Upper Band) + ₹40 (GMP) = ₹110
That would translate into a 57% listing gain if the GMP holds until
the listing day.
Of course, this is just an estimate. The
actual listing price will depend on:
·
Market conditions on August 12
·
Overall sentiment around IPOs
· QIB interest and macroeconomic data
Simple Takeaway for New Investors
If you’re new to IPO investing, this one is a
textbook example of how strong retail interest can push an issue over the
finish line within hours.
But remember: a high GMP or fast subscription
doesn’t always guarantee success post-listing. The best approach is to:
·
Read the company’s Red Herring Prospectus (RHP)
·
Assess your risk appetite
·
Consider your holding timeline (short-term vs
long-term)
· Stay updated with allotment and listing news
Risk Disclaimer
Disclaimer:
This article is for informational purposes only. Grey Market Premium (GMP) data
is unofficial and not regulated by SEBI or stock exchanges. Investors are
advised to do their own research or consult a SEBI-registered advisor before
investing. Past performance is not indicative of future returns.
Final Thoughts: Strong Opening, But Wait for
Full Picture
Highway Infrastructure’s IPO started with a
bang. Strong retail demand, early anchor participation, and a healthy grey
market premium suggest that investor sentiment is largely positive.
However, investors should track the remaining
two days of the IPO closely. The final demand from institutional investors and
broader market trends could influence the actual listing performance.
If you’ve already applied, stay updated on allotment status and refund timelines. If you’re considering applying before the closing date, weigh the risks, understand the business fundamentals, and don’t chase just the hype.
