Summary:
Highway Infrastructure IPO opens for subscription today. Learn key details, expert analysis, and whether you should subscribe.
India's SME space enters the spotlight once more with the debut of Highway Infrastructure Limited (HIL). Positioned across toll operations and EPC projects, Highway Infrastructure IPO has attracted notable investor attention, bolstered by strong demand indicators and valuation prospects.
Below, we explore the IPO timeline, price band, company fundamentals, and whether subscription aligns with your investment strategy.
| Event | Date / Detail |
|---|---|
| IPO Opens | August 5, 2025 |
| IPO Closes | August 7, 2025 |
| Price Band | ₹65–70 per share |
| Lot Size / Min Invest | 211 shares / ₹14,770 |
| Allotment Basis | August 8, 2025 |
| Share Credit & Refunds | August 11, 2025 |
| Expected Listing | August 12, 2025 on NSE & BSE SME |
The subscription window opens on Tuesday, August 5, and closes on Thursday, August 7, 2025.
Anchor Allocation: Completed on August 4, with ~₹23.4 crore allotted to institutional investors, including HDFC Bank and VPK Ventures.
Allotment Basis Date: Expected August 8, followed by refunds and share credit on August 11
Listing Date: Tentatively August 12 on NSE SME and BSE
Highway Infrastructure has set its IPO price band between ₹65 and ₹70 per share, with a floor lot size of 211 shares, translating to a minimum investment of approximately ₹14,770.
Of the total issue size worth ₹130 crore, around ₹97.5 crore represents new equity while ₹32.5 crore is an Offer for Sale, primarily designated for promoters and early investors.
In secondary market discussions, Highway Infrastructure IPO holds a grey market premium of around ₹40 per share, suggesting a likely listing price close to ₹110.
This 57% projected premium signals strong investor appetite and expectations of substantial listing gains.
Founded in 1995, HIL has built expertise in highway contracts and toll operations. Its current EPC order book is estimated at ₹666 crore, with a mix of recurring toll income and project-based revenue.
FY25 performance: Revenue ₹495.7 crore (–13.6%), yet PAT rose ~4.6% to ₹22.4 crore aided by operational efficiency
At ₹70/share, implied FY25 P/E is ~22.5× and post-issue market cap near ₹502 crore (~₹5,020 million)
HIL's appeal stems from its niche presence in infrastructure sectors supported by government investment. With close to 30 years of operational experience and consistent revenue from toll operations, the company presents itself as a reliable choice for SMEs.
Additionally, the valuation is below that of competing infrastructure firms that are trading in the mid-40s P/E range, rendering HIL relatively more appealing to cautious investors.
Moreover, strong demand in pre-IPO markets, backed by anchor investor interest and grey market pricing, further reinforces the notion of listing upside potential. Lastly, the revitalised infrastructure in India may facilitate enduring growth and value generation.
Consider subscribing if:
You seek exposure to the SME infrastructure/toll sector at a discount.
Comfortable with high GMP, indicating premium listing prospects.
You can accommodate lot size and allocation uncertainties.
Be cautious if:
You're wary of limited liquidity, promoter selling pressure, or valuation risks.
You seek better publicly traded infrastructure companies with greater operational capacity (e.g. IRB, Dilip Buildtech).
You desire a reliable income and a consistent history of dividends.
Despite its advantages, prospective investors must be aware of some issues.
Small scale: With a post-IPO market cap around ₹500 crore, liquidity and volatility are risks.
Revenue decline in FY25 indicates sensitivity to project cycles and revenue recognition timing.
Promoter selling through OFS could cap price momentum.
Listing risk: Grey market premiums aren't guarantees, as similar SME IPOs like ArisInfra have listed below the IPO price despite earlier optimism
Valuation caution: P/E ~22.5× may leave limited upside unless growth accelerates substantially.
In conclusion, Highway Infrastructure's IPO is notable for its strong SM₹E traction and compelling grey market sentiment, suggesting potential for listing gains of 50‑60%. However, its small revenue foundation, limited scale, and promoter selling call for careful consideration.
If you are optimistic about infrastructure growth and can handle SME market volatility, subscribing at the higher range might provide access to appealing valuations. But if scale, liquidity, or long-term stability are priorities, you may be better served evaluating established public infrastructure entities.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Gift Nifty is India’s USD-based Nifty futures traded at GIFT City, offering global investors extended access and early cues for Indian market direction.
2025-08-07
Cut the noise with a proven forex trading strategy. Leverage technical analysis, key forex indicators, and EBC’s expert analysis, webinars, and signal alerts.
2025-08-07
Explore the top 25 countries with weaker currencies than the Indian Rupee in 2025. Ideal for forex and investor enthusiasts.
2025-08-07
