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Highway Infrastructure Ltd., a prominent player in India’s toll and EPC infrastructure space, has kicked off its initial public offering (IPO) journey with a promising start. On August 4, 2025, the company successfully allocated shares worth ₹234 million to anchor investors, marking a crucial prelude to its public issue opening on August 5. This anchor book allocation reflects robust institutional interest and sets the tone for broader investor participation in the days ahead.
Anchor Book Allocation: A Strategic Prelude
The anchor investor portion of an IPO is often viewed as a bellwether for market sentiment. Highway Infrastructure’s ₹234 million allocation to institutional investors underscores confidence in the company’s fundamentals and growth trajectory.
Key highlights from the anchor book:
- ₹234 million worth of shares allocated to qualified institutional buyers
- Participation from marquee domestic and foreign institutional investors
- Allocation completed a day prior to IPO opening, in line with SEBI guidelines
- Price band fixed at ₹65 to ₹70 per equity share, with face value of ₹5
This early infusion of capital not only validates the company’s valuation but also enhances credibility among retail and non-institutional investors.
IPO Structure and Objectives
The Highway Infrastructure IPO is a book-built issue aggregating up to ₹130 crore. It comprises a fresh issue of ₹97.52 crore and an offer-for-sale (OFS) of ₹32.48 crore by promoters Arun Kumar Jain and Anoop Agrawal.
Key components of the IPO:
- Fresh issue to fund working capital needs and general corporate purposes
- OFS to provide partial exit to promoters
- Minimum lot size of 211 shares, priced between ₹14,770 and ₹1,92,010 for retail investors
- Listing scheduled on BSE and NSE on August 12, 2025
The company plans to utilize ₹65 crore from the fresh issue for working capital, with the remainder earmarked for strategic expansion and operational efficiency.
Business Profile and Financial Snapshot
Founded in 1995, Highway Infrastructure Ltd. specializes in toll collection, EPC (Engineering, Procurement, and Construction) projects, and real estate development. The company has a strong presence across 11 states and one Union Territory, with a diversified order book and proven execution capabilities.
Key financial metrics for FY25:
- Total revenue: ₹495.7 crore (down 13.6% year-on-year)
- Net profit: ₹22.4 crore (up 4.6% year-on-year)
- EBITDA: ₹31.3 crore, with margin improvement to 6.32%
- Order book: ₹666.3 crore, including ₹59.5 crore from toll operations and ₹606.8 crore from EPC projects
Despite a dip in revenue, the company’s profitability improved due to operational efficiencies and other income streams.
Market Sentiment and Grey Market Premium
The IPO has generated notable buzz in the grey market, with a premium of ₹40 per share as of August 4. This suggests a potential listing price of ₹110, representing a 57.14% upside from the upper end of the price band.
Investor sentiment indicators:
- Strong anchor book participation
- Healthy GMP reflecting demand-supply dynamics
- Mixed brokerage reviews, with some recommending long-term subscription
- Competitive positioning against peers like IRB Infrastructure and H.G. Infra Engineering
The combination of toll and EPC businesses offers diversified revenue streams, while the use of ANPR technology in toll systems provides a technological edge.
Strategic Outlook and Risks
Looking ahead, Highway Infrastructure aims to expand its footprint through project clustering, technology integration, and participation in government schemes. However, risks include regional concentration, short contract tenures, and potential conflicts of interest with related entities.
Forward-looking priorities:
- Strengthening presence in high-growth regions
- Enhancing toll automation and EPC execution capabilities
- Navigating regulatory and competitive challenges
- Leveraging IPO proceeds for operational scalability
The anchor investment signals institutional belief in the company’s roadmap, but retail investors are advised to weigh risks and valuations before subscribing.
Source: Exchange filings submitted by Highway Infrastructure Ltd. to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 4, 2025.
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