Despite strong investor interest during the three-day bidding process, the IPO’s grey market premium (GMP) fell sharply.
During the bidding period, the GMP was as high as ₹40 per share, but it has since dropped by about 40% to ₹24-25. This correction suggested a potential listing gain of roughly 34-35% for investors.The tollway operator’s IPO was subscribed 300.60 times between August 5 and August 7. This impressive figure was backed by QIBs who oversubscribed their portion by 420.57 times, while NIIs exceeded their allocation by 447.32 times. The retail investor segment was booked 155.58 times.
The IPO included a fresh issue of ₹97.5 crore and an offer for sale of ₹32.5 crore, aggregating to ₹130 crore.
Proceeds will be utilised to meet working capital needs and for general corporate purposes.Highway Infrastructure has already raised ₹23.4 crore from institutional investors via anchor book. VPK Global Ventures Fund has invested ₹8.4 crore against nearly 12 lakh shares in Highway Infrastructure, while HDFC Bank, Abans Finance, and Sunrise Investment Opportunities Fund bought 7.14 lakh shares worth ₹5 crore each.
Company overview
Highway Infrastructure operates primarily in tollway collection, EPC infrastructure projects, and to a smaller extent, real estate development. As of May 2025, its consolidated order book stood at ₹666.3 crore, with over 90% of it from its core toll and EPC segments.
The company has completed 27 tollway projects and is currently operating four, including ANPR-enabled tolling on the Delhi-Meerut Expressway.
Over the years, it has executed 66 EPC projects, with 24 more underway. The company’s stronghold lies in Madhya Pradesh but extends to 11 states and one Union Territory.
Highway Infrastructure posted a FY25 net profit of ₹22.4 crore, up 4.6% YoY, on revenues of ₹495.7 crore. The EBITDA margin stood at 6.3%, with a PAT margin of 4.5%. Its post-issue P/E comes to 22.5x, translating into a market cap of ₹502 crore.
First Published: Aug 12, 2025 9:59 AM IS
