Highway Infrastructure Ltd IPO: A Comprehensive Overview
Highway Infrastructure Ltd is launching its Initial Public Offering (IPO), a fresh issue aggregating ₹97.52 crore, complemented by an offer for sale (OFS) of ₹32.48 crore.
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Highway Infrastructure IPO Timeline and Price Details
The public issue will be open for subscription for three days, following a one-day anchor book on 4 August 2025. The company plans to list on both BSE and NSE around 12 August 2025, with a post-issue implied market cap ranging from ₹473 to ₹502 crore.
IPO Price Valuation
Bidding within the ₹65 to ₹70 price range offers investors a choice. The valuation appears reasonable when compared to industry peers.
- At ₹65 (lower band), the P/E ratio is approximately 20x.
- At ₹70 (upper band), the P/E ratio is approximately 21x.
- Peer companies in the expressway upkeep sector trade at P/E ratios between 18x and 23x.
Also Read: Sri Lotus Developers IPO Date, Price, Review & GMP
Highway Infrastructure Ltd IPO Review
A balanced review highlights several key strengths and potential issues for investors to consider.
Overall Verdict: The company's strong history and tangible revenue stream warrant a "Subscribe" rating for investors with a long-term portfolio perspective.
Highway Infrastructure IPO GMP
The Grey Market Premium (GMP) for the Highway Infrastructure IPO was reported in the range of ₹3–₹5 per share in the days leading up to the issue. This indicates decent initial demand, but GMP is volatile and can change based on market sentiment and subscription figures.
Key Risks for Highway Infrastructure Ltd
The principal threats to the company's performance include:
- Regulatory Delays: Project award schedules can be postponed due to land acquisition or clearance issues.
- Interest Rate Movements: Rising interest rates could increase borrowing costs and impact profitability.
- Client Concentration: A significant portion of revenue is derived from a few large government contracts.
- Execution Risks: Large-scale EPC projects inherently carry execution and cost-overrun risks.
Investors should closely track order inflows and margin trends after listing.
Highway Infrastructure vs Peer Comparison
Highway Infrastructure shows a reasonable valuation and debt level compared to its peers, with potential for growth.
| Peer Name | FY24 Revenue (₹ Cr) | P/E at IPO Cap Price | Debt/Equity (FY24) |
|---|---|---|---|
| Highway Infrastructure Ltd | 350 | 21x | 0.8x |
| RoadBuild Co. | 420 | 19x | 0.6x |
| Expressway Maintenance Ltd. | 280 | 23x | 1.0x |
| National Tollways Corp | 500 | 18x | 0.7x |
Visual Peer Comparison
Highway Infrastructure Ltd IPO Allocation
The share allocation is structured to cater to different investor categories. Given the high demand for recent infrastructure IPOs, retail investors may anticipate partial allotment.
Do You Apply or Not? A Quick Checklist
Consider the following points to decide if this IPO fits your investment strategy:
- Long-Term Horizon: Apply if you believe in India's road infrastructure growth story and can hold for 2-3 years.
- Valuation Comfort: The P/E of 20-21x is reasonably priced compared to peers.
- Risk Appetite: Suitable for risk-tolerant investors who can absorb execution and sector-specific cyclical risks.
- Portfolio Fit: A good option to add infrastructure sector exposure if your portfolio is underweight.
Verdict: Conservative investors could consider bidding at the floor price (₹65). Growth-oriented portfolios can bid at the cap price (₹70).
Highway Infrastructure IPO: Frequently Asked Questions (FAQs)
The issue consists of a new issue of fresh equity worth ₹97.52 crore and an offer for sale worth ₹32.48 crore, aggregating ₹130 crore. Retail investors can bid in lots of 211 shares.
The public issue opens on 5 August 2025 and closes on 7 August 2025, with an anchor book on 4 August 2025. Allotment can occur around 8 August, and listing on NSE/BSE by 12 August is anticipated.
Investors can pay between ₹65 and ₹70 for a ₹5 face-value share. The lowest price is equivalent to a price-to-earnings ratio of about 20 times, and the highest price is about 21 times.
40% of the quota is for retail, 30% for QIBs (including anchor), and 30% for HNIs, divided further into 10% for bids of ₹2–10 lakh and 20% for bids over ₹10 lakh.
Pantamath Capital Advisors acts as the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar for the issue.
