Highway Infrastructure share listed today - 300x IPO Subscription 🚀
Highway Infrastructure Limited made a spectacular entry into Indian capital markets on Tuesday, August 12, with its shares listing at ₹117 on BSE and ₹115 on NSE, reflecting premiums of 67% and 64% over the issue price of ₹70. The stock quickly surged to the 5% upper circuit limit, trading at ₹122.84, giving the company a market capitalization of ₹881 crore. 📈
This blockbuster debut followed an overwhelming response to the ₹130 crore IPO, which was subscribed 300.61 times during the August 5-7 bidding period. The frenzy was led by qualified institutional buyers (QIBs) with a 420.57x subscription, non-institutional investors at 447.32x, and retail investors at 155.58x. 🏦
Strong Listing Beats Grey Market Expectations 📊
The listing outperformed grey market premium (GMP) estimates, which had dropped from ₹40 during the IPO bidding to ₹24-25, indicating a 34-35% premium. The actual 67% premium delivered substantial gains: retail investors with one lot of 211 shares earned ₹9,917, while HNI investors with 14 lots pocketed ₹1,38,838. 💰
| Investor Type | Subscription Rate | Profit per Allocation |
|---|---|---|
| Retail Investors | 155.58x | ₹9,917 (1 lot) |
| HNI Investors | 447.32x | ₹1,38,838 (14 lots) |
| QIBs | 420.57x | N/A |
"A niche opportunity in India's tollway and EPC infrastructure space, backed by consistent growth and a robust order book." — Narendra Solanki, Anand Rathi Shares and Stock Brokers 🌟
Business Model and Financial Snapshot 🛣️
Highway Infrastructure operates in three key segments: tollway collection (77% of FY25 revenue), EPC infrastructure (21%), and real estate (2%). Based in Indore, the company manages toll collection across 11 states and one Union Territory, leveraging technologies like Automatic Number Plate Recognition (ANPR) on the Delhi-Meerut Expressway. 🛠️
Revenue Breakdown (FY25)
Financially, FY25 saw revenue dip 13.5% to ₹495.72 crore from ₹573.45 crore in FY24, but profit after tax rose 4.5% to ₹22.40 crore. The company boasts a ₹666.31 crore order book as of May 2025, with ₹606.78 crore from EPC and ₹59.53 crore from tollway projects. 📋
Technology and Competitive Edge 💻
Highway Infrastructure stands out with its tech-driven toll collection systems. It uses ANPR and Electronic Toll Collection (ETC) with RFID for seamless, contactless payments, reducing congestion and boosting efficiency at toll plazas. The company has completed 27 tollway projects and operates 4 active ones, alongside 66 EPC projects, with 24 ongoing. 🛠️
| Project Type | Completed | Ongoing |
|---|---|---|
| Tollway | 27 | 4 |
| EPC Infrastructure | 66 | 24 |
Capital Allocation and Growth Plans 📅
The IPO included a ₹97.52 crore fresh issue and a ₹32.48 crore offer-for-sale by promoters Arun Kumar Jain and Anoop Agarwal. Of the fresh issue, ₹65 crore will fund working capital needs, with the rest for general corporate purposes. The company raised ₹23.39 crore from anchor investors like HDFC Bank and VPK Global Ventures Fund, signaling strong institutional trust. 🤝
IPO Timeline
August 5-7, 2025
IPO Bidding Period 🗳️
Pre-IPO
₹23.39 crore raised from anchor investors 💸
August 12, 2025
Shares listed at ₹117 (BSE) and ₹115 (NSE) 📈
Infrastructure Sector Outlook 🏗️
The listing aligns with India’s infrastructure boom under initiatives like the National Infrastructure Pipeline and Bharatmala Pariyojana. Government projections suggest 5,100 km of toll roads will be completed by FY25, generating ₹4,200 crore in toll revenue during FY25-26. Highway Infrastructure’s digitized operations and regional EPC expertise position it to capitalize on this growth. 🌍
"Pricing discipline and project scalability will be key for consistent value creation." — Bhavik Joshi, INVasset PMS 🔍
Analyst Insights and Valuation 📉
At ₹70, the company trades at a FY25 P/E of 22.5x, with an ROE of 19.03% and ROCE of 16.56%. While valuations seem high compared to peers, its technological edge and diversified revenue streams are strong draws. Analysts recommend holding for long-term gains, with potential for partial profit booking post-listing. 📚
Frequently Asked Questions ❓
What was the listing performance of Highway Infrastructure Limited's IPO?
Highway Infrastructure Limited's shares listed at ₹117 on BSE and ₹115 on NSE, representing premiums of 67% and 64% respectively over the issue price of ₹70. The stock hit the 5% upper circuit limit, trading at ₹122.84.
How was the IPO subscription for Highway Infrastructure?
The ₹130 crore IPO was subscribed 300.61 times, with qualified institutional buyers (QIBs) oversubscribing by 420.57 times, non-institutional investors by 447.32 times, and retail investors by 155.58 times.
What are the main business segments of Highway Infrastructure?
The company operates in three segments: tollway collection (77% of FY25 revenue), EPC infrastructure (21%), and real estate (2%).
What technologies does Highway Infrastructure use in toll collection?
The company employs Automatic Number Plate Recognition (ANPR) and Electronic Toll Collection (ETC) systems with RFID technology for efficient, contactless toll operations.
How will the IPO proceeds be utilized?
The company plans to use ₹65 crore of the ₹97.52 crore fresh issue for working capital requirements, with the balance allocated for general corporate purposes.
