Highway Infrastructure IPO to open on August 5

Mumbai, 4 August 2025: Highway Infrastructure Limited is set to enter the capital markets with its ₹130 crore initial public offering (IPO) on August 5, 2025. The issue will remain open for subscription until August 7, 2025, with the price band fixed at ₹65 to ₹70 per share. The company aims to raise funds to support its working capital and general corporate needs, while offering investors a stake in one of India’s experienced players in the toll collection and infrastructure EPC (Engineering, Procurement and Construction) segment.

Highway Infrastructure IPO Structure Includes ₹97.52 Cr Fresh Issue and ₹32.48 Cr Offer for Sale

Highway Infrastructure IPO consists of a fresh issue of 1.39 crore equity shares aggregating up to ₹97.52 crore, and an offer for sale (OFS) of 0.46 crore shares worth ₹32.48 crore, offered by existing shareholders. The total issue size comprises 1.85 crore equity shares, aggregating up to ₹130 crore.

• Issue Price Band: ₹65 to ₹70 per share
• Face Value: ₹5 per share
• Lot Size: 211 shares
• Minimum Retail Investment: ₹13,715 (211 shares)
• Listing: BSE, NSE

The issue is being managed by Pantomath Capital Advisors Pvt Ltd, while Bigshare Services Pvt Ltd is the registrar.

Retail Investors Need Minimum ₹13,715; HNIs up to ₹10.04 Lakh for Full Bid

Investors can apply for the IPO in multiples of 211 shares. A retail investor can apply for up to 13 lots (2,743 shares) with a total investment of ₹1,92,010. For small non-institutional investors (sNII), the minimum bid size is 14 lots (2,954 shares) worth ₹2,06,780, and for big non-institutional investors (bNII), it is 68 lots (14,348 shares) amounting to ₹10,04,360.

IPO Reservation Split Between Retail, QIBs and NIIs; Listing Expected on August 12

The issue has been structured with specific investor reservation quotas:

• Retail Investors: Not less than 40% of the net offer
• Qualified Institutional Buyers (QIBs): Not more than 30%
• Non-Institutional Investors (NIIs): Not less than 30%

Tentative Timeline

• IPO Opens: Tuesday, August 5, 2025
• IPO Closes: Thursday, August 7, 2025
• Allotment Date: Friday, August 8, 2025
• Refunds Initiated: Monday, August 11, 2025
• Demat Credit: Monday, August 11, 2025
• Listing Date: Tuesday, August 12, 2025
• UPI Cut-off Time: 5 PM, August 7, 2025

Highway Infrastructure to Utilise ₹65 Cr for Working Capital Needs and Strengthen Financial Liquidity

The net proceeds from the IPO are primarily planned for strengthening the working capital base and meeting general corporate requirements.

Utilisation of Proceeds:

• ₹65.00 crore for funding working capital requirements

• Remaining for general corporate purposes

Highway Infrastructure Ltd: A Veteran in Toll Operations and EPC Projects With Pan-India Presence

Founded in 1995, Highway Infrastructure Ltd. (HIL) has emerged as a seasoned infrastructure and development company specialising in tollway collection, EPC contracts, and real estate. HIL operates toll projects across 11 states and one Union Territory and is among the few using Automatic Number Plate Recognition (ANPR) technology on expressways. It also employs RFID-based digital toll systems for seamless payments.

As of August 31, 2024, the company had completed 24 toll collection projects and operated 7 ongoing ones. In its EPC segment, the company has completed 63 infrastructure projects including roads, bridges, irrigation and civil structures, with 20 ongoing projects mainly located in Madhya Pradesh. HIL’s real estate vertical, though relatively smaller, is engaged in residential and commercial development, including gated communities.

Revenue Declines 13% While PAT Rises 5% in FY25; Total Assets at ₹231.56 Cr

In terms of financial performance, Highway Infrastructure Ltd. reported a decline of 13% in revenue in FY25 at ₹504.48 crore, compared to ₹576.58 crore in FY24. However, the profit after tax (PAT) increased by 5% YoY to ₹22.40 crore, up from ₹21.41 crore. The company’s EBITDA was reported at ₹31.32 crore for FY25, compared to ₹38.44 crore in the previous year.

The total assets stood at ₹231.56 crore, while net worth increased to ₹117.72 crore. The company’s reserves and surplus stood at ₹83.90 crore, and total borrowings amounted to ₹71.82 crore, reflecting stable debt levels.

ROE at 19.03% and PAT Margin at 4.44%; Valuation at P/E of 22.41 Based on Post-IPO EPS

From a performance metrics standpoint, Highway Infrastructure’s Return on Equity (ROE) stood at 19.03%, while Return on Capital Employed (ROCE) was at 16.56%. The EBITDA margin came in at 6.32%, with a PAT margin of 4.44% for FY25. The company’s Debt-to-Equity ratio stood at 0.61, indicating moderate leverage.

The price-to-book value was reported at 3.44, and Return on Net Worth (RoNW) aligned with ROE at 19.03%. The post-issue earnings per share (EPS) was ₹3.12, placing the price-to-earnings (P/E) multiple at 22.41x on the upper price band.

Peer Comparison Highlights Balanced Fundamentals; Trails IRB and H.G. Infra in Size but Scores Well on Returns

When compared with other listed players in the infrastructure segment, Highway Infrastructure presents a mixed but stable profile. Its EPS (basic and diluted) stood at ₹3.40, while Net Asset Value (NAV) per share was ₹20.37.

In comparison, IRB Infrastructure Developers reported a P/E ratio of 44.38 and RoNW of 32.69%, while H.G. Infra Engineering showed a robust EPS of ₹75.04, with a P/E of 14.00 and RoNW of 17.13%. Notably, Udayshivakumar Infra reported negative earnings and RoNW, reflecting weaker fundamentals.

Despite being smaller in scale, Highway Infrastructure demonstrates a strong return profile and prudent capital structure, positioning itself as a competitive mid-tier player in India’s infrastructure space.

REF: https://nsearchives.nseindia.com/content/ipo/RHP_HILINFRA.zip

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