Highway Infrastructure IPO Price Band Fixed at ₹65-₹70 Per Share; ₹130 Cr Issue Opens Today

Mumbai, 5 August 2025: Highway Infrastructure Limited has launched its ₹130 crore Initial Public Offering (IPO) today, with a price band of ₹65 to ₹70 per share. The IPO is a book-building issue and includes a fresh issue of 1.39 crore equity shares aggregating to ₹97.52 crore, along with an Offer for Sale (OFS) of 46.4 lakh shares worth ₹32.48 crore. The issue opens for subscription on August 5, 2025 and closes on August 7, 2025, with tentative listing scheduled on August 12, 2025, on both BSE and NSE.

Retail Investors Can Apply with ₹13,715 for One Lot of 211 Shares

Investors can bid for a minimum of 211 shares, which equates to ₹13,715 at the lower end of the price band. Retail investors can apply for a maximum of 13 lots, while Small Non-Institutional Investors (sNII) can apply for a minimum of 2,954 shares at ₹2,06,780, and Big Non-Institutional Investors (bNII) can apply for a minimum of 14,348 shares at an investment of ₹10,04,360.

₹130 Cr Issue Comprises Fresh Equity and Offer for Sale from Existing Shareholders

The issue consists of a combination of new capital and an offer from existing shareholders, broken down as follows:

• Fresh Issue: 1,39,31,428 equity shares aggregating up to ₹97.52 crore
• Offer for Sale: 46,40,000 equity shares aggregating up to ₹32.48 crore

Highway Infrastructure IPO is being managed by Pantomath Capital Advisors Pvt Ltd as the book-running lead manager, and Bigshare Services Pvt Ltd is acting as the registrar.

IPO Quota Distribution: Retail Set to Get At Least 40% of the Net Offer

As per regulatory allocation guidelines, the IPO is structured as follows:

• Retail Individual Investors (RII): Not less than 40% of the Net Offer
• Non-Institutional Investors (NII): Not less than 30% of the Net Offer
• Qualified Institutional Buyers (QIB): Not more than 30% of the Net Offer

Net Proceeds to Fund ₹65 Cr Working Capital and Support Corporate Operations

Highway Infrastructure Ltd plans to utilise the IPO proceeds primarily to support working capital requirements amounting to ₹65 crore, while the remainder will be directed towards general corporate purposes. This capital infusion is expected to bolster the company’s operational capacity, especially across its toll collection and EPC infrastructure projects.

Highway Infrastructure Ltd: Toll, EPC and Real Estate Business Across 11 States and One UT

Founded in 1995, Highway Infrastructure Ltd. (HIL) has emerged as a multi-vertical infrastructure player, offering tollway collection, engineering and construction services, and a small real estate development portfolio. The company operates across 11 Indian states and 1 Union Territory, and is known for its use of advanced ANPR (Automatic Number Plate Recognition) and RFID-based Electronic Toll Collection systems.

As of August 31, 2024, HIL had completed 24 tollway projects and was operating 7, alongside 63 completed EPC infrastructure projects and 20 under execution in cities such as Indore, Ratlam, and Khandwa. Its real estate arm, focused on gated communities and residential projects, remains the smallest revenue contributor. The company employs 398 people across its verticals.

Financial Performance: Profit After Tax Rises 5% Despite 13% Fall in Revenue in FY25

Highway Infrastructure Ltd. reported a total income of ₹504.48 crore for the financial year ended March 31, 2025, registering a 13% decline from ₹576.58 crore in FY24. Despite the drop in revenue, the company managed to improve its profit after tax (PAT) by 5%, increasing from ₹21.41 crore in FY24 to ₹22.40 crore in FY25. This was aided by operational efficiencies that also led to a stable EBITDA of ₹31.32 crore in FY25, compared to ₹38.44 crore in FY24.

The company’s total assets grew to ₹231.56 crore in FY25, from ₹202.63 crore in the previous year, while its net worth rose to ₹117.72 crore, reflecting a steady expansion in equity capital. Borrowings stood at ₹71.82 crore, up marginally from ₹69.62 crore last year.

Key Metrics Reflect Healthy Return Ratios and Capital Efficiency

As of March 31, 2025, Highway Infrastructure Ltd. reported a ROE of 19.03% and ROCE of 16.56%, reflecting healthy returns. Its debt-to-equity ratio stood at 0.61, indicating a stable capital structure. With a PAT margin of 4.44% and EBITDA margin of 6.32%, the company maintained cost efficiency. The P/B value was 3.44 times, and its post-issue market capitalisation is estimated at ₹502.04 crore.

The company’s earnings per share (EPS) prior to the IPO was ₹3.88, which is expected to be diluted to ₹3.12 post-issue, owing to the increased equity base. Accordingly, the price-to-earnings (P/E) ratio is expected to move from 18.06 pre-issue to 22.41 post-issue.

Peer Comparison Shows HIL Holds Strong RoNW and Mid-range Valuation Metrics

In terms of performance relative to peers, Highway Infrastructure’s Return on Net Worth (RoNW) of 19.03% stands out, especially when compared to IRB Infrastructure Developers, which reported a RoNW of 32.69%, and H.G. Infra Engineering, with 17.13%. While HIL’s EPS of ₹3.40 is considerably lower than that of H.G. Infra Engineering (₹75.04), it is higher than IRB Infrastructure Developers (₹1.12) and Udayshivakumar Infra, which reported negative earnings. HIL’s Net Asset Value (NAV) per share is ₹20.37, while IRB and HG Infra reported NAVs of ₹32.83 and ₹452.62, respectively. While HIL may not lead on earnings, its return ratios and NAV position it competitively among mid-sized infrastructure companies.

Key IPO Dates and Timeline

• IPO Opening Date: Tuesday, August 5, 2025
• IPO Closing Date: Thursday, August 7, 2025
• Allotment Finalisation: Friday, August 8, 2025
• Refund Initiation: Monday, August 11, 2025
• Credit to Demat Accounts: Monday, August 11, 2025
• Listing Date (Tentative): Tuesday, August 12, 2025
• UPI Mandate Cut-Off Time: 5 PM on August 7, 2025

With a diversified presence across the toll, EPC, and real estate sectors, backed by consistent profitability and robust return metrics, Highway Infrastructure Ltd. offers investors an opportunity to participate in a mid-sized infrastructure player with scalable potential. While valuation metrics are moderate, the company’s execution history and geographic spread offer a balanced risk-reward profile for investors considering participation in this IPO.

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