Highway Infra IPO Day 2: Issue Subscribed 72.92 Times So Far — Should You Invest? Full Details Inside
Highway Infrastructure IPO GMP Today: The grey market premium is currently at 54.29%, pointing to robust listing gains for investors.
The initial public offering (IPO) of Highway Infrastructure Ltd is seeing its second day of bidding today, Wednesday, August 6. The issue will conclude on August 7. The price band for this mainboard IPO, aiming to raise ₹130 crore, has been fixed between ₹65 and ₹70 per share. As of 5:00 pm on Day 2 (Wednesday), the IPO received a massive 72.92 times subscription, with bids for 1,16,98,86,124 shares compared to 1,60,43,046 shares on offer.
Retail and Non-Institutional Investor (NII) segments were subscribed 73.55 times and 97.90 times respectively, while the Qualified Institutional Buyer (QIB) segment saw 7.10 times subscription.
The IPO’s grey market premium (GMP) currently stands at 54.29%, suggesting strong potential listing gains for applicants.
Highway Infrastructure IPO Important Dates
- The IPO will be open for bidding from August 5, 2025, to August 7, 2025.
- Allotment of shares is expected on August 8.
- The company is likely to be listed on both BSE and NSE on August 12.
Highway Infrastructure IPO Price Band and Lot Size
- Price band: ₹65 to ₹70 per equity share
- Minimum lot size: 211 shares
- Therefore, retail investors will need to invest a minimum of ₹13,715 to apply (assuming upper band of ₹70 per share).
Highway Infrastructure IPO GMP Today
As per market observers, unlisted shares of Highway Infrastructure Ltd are trading at ₹108 in the grey market, compared to the IPO’s upper price of ₹70. This means a GMP of ₹38, or 54.29% premium over the issue price—indicating strong investor sentiment and potential listing gains.
It’s important to note that GMP is based on market mood and is subject to fluctuations. It reflects how much more investors are willing to pay for shares compared to the IPO price.
Highway Infrastructure IPO: Should You Invest?
Highway Infrastructure Ltd (HIL), a firm involved in tollway operations and EPC infrastructure projects, has received mixed reviews from major brokerages. While several firms have recommended subscribing—particularly for long-term benefits or listing gains—some have raised concerns regarding valuation and business risk.
Swastika Investmart: Subscribe
Swastika recommends applying to the IPO for both listing gains and long-term growth. It highlights the company’s adoption of advanced technologies like ANPR for tolling and its EPC-led order book, which offers visibility into future income. Though valued at 18.06x FY25 earnings, the brokerage sees upside potential due to the sector’s positive outlook and HIL’s execution strength.
Anand Rathi Shares & Stock Brokers: Subscribe for Long-Term
Anand Rathi is positive about HIL’s long-term outlook, pointing to the government’s focus on road development and the company’s efforts to bolster its tollway and EPC divisions. The firm sees HIL as a unique player in the infrastructure segment, with steady growth and a strong project pipeline. Use of ANPR technology for efficiency was cited as a key advantage.
Arihant Capital Markets: Subscribe for Listing Gains
Arihant Capital suggests subscribing purely for listing gains, acknowledging HIL’s footprint in 11 states and one Union Territory, and a business model that covers both toll operations and EPC infrastructure. As of May 31, 2025, HIL had a consolidated order book of ₹666.3 crore. The firm is confident about HIL’s future due to India’s rising investment in roads. The IPO is priced at 22.41x FY25 projected EPS of ₹3.1.
SBI Securities: Avoid
Taking a contrary stance, SBI Securities advises investors to skip the IPO. They cite HIL’s small size, short-term toll contracts, and heavy dependence on government clients (91% revenue) as key concerns. They also noted HIL’s low profit margins, long working capital cycle, and geographical concentration, concluding that the valuation is not justified. As per them, the stock is priced at 25.5x FY25 P/E and 17.8x EV/Ebitda, which doesn’t align with its financials.
Highway Infrastructure IPO: Additional Information
- The IPO is a book-built issue worth ₹130 crore.
- It includes a fresh issue of 1.39 crore shares (₹97.52 crore) and an offer for sale of 0.46 crore shares (₹32.48 crore).
About the Company:
Highway Infrastructure Limited (HIL), founded in 1995, is engaged in tollway collections and EPC infrastructure projects with a smaller presence in real estate. The company operates tolling systems across 11 states and 1 Union Territory, using technologies like ANPR and RFID-based ETC. As of August 31, 2024, HIL had completed 24 toll projects and was running 7.
In EPC, it has completed 63 projects and is currently working on 20, largely in Madhya Pradesh, including roads, bridges, irrigation, and construction. Its real estate arm focuses on residential and commercial properties but remains minor. The company employs 398 staff members.
In terms of financials, revenue fell by 13%, while profit after tax (PAT) rose by 5% between FY24 and FY25.
Lead Manager: Pantomath Capital Advisors Pvt Ltd
Registrar: Bigshare Services Pvt Ltd
