Strong order book, proven track record lift Highway Infrastructure IPO 72% on debut — insights from the RHP

Mumbai | August 12 –  Highway Infrastructure Ltd delivered a robust market debut on Tuesday, with shares listing at a significant premium to the issue price, backed by strong fundamentals detailed in its Red Herring Prospectus (RHP).

The stock opened at ₹115 on the NSE, 64.29% above its issue price of ₹70, and quickly hit its upper circuit of ₹120.75 — marking a total gain of around 72% from the IPO price. On the BSE, it listed at ₹117 per share, a 67% premium, before moving up to ₹122.84. At closing levels, the company commanded a market capitalisation of ₹866.03 crore.

The ₹130-crore IPO comprised a fresh issue worth ₹97.52 crore and an offer for sale of ₹32.48 crore. The price band was set at ₹65–₹70 per share. Allotments were finalised on August 8, with proceeds earmarked primarily for working capital needs (₹65 crore) and general corporate purposes.

The issue attracted massive investor interest, being oversubscribed 300.61 times during its three-day bidding window, driven largely by institutional participation.

Key competitive strengths from the RHP

• Three decades of sector expertise: Highway Infrastructure has been operating in toll collection and executing EPC projects across India for nearly 30 years.
• Robust order book: As of May 2025, the company’s order book stood at ₹666.3 crore — with ₹59.53 crore from toll collection and ₹606.77 crore from EPC projects.
• Diversified revenue streams: Operations span EPC infrastructure projects, toll-way collection, and a real estate business.
• Steady profitability: Net profit rose 4.57% YoY to ₹22.39 crore in FY25, compared to ₹21.41 crore in FY24.
• Institutional trust: Strong subscription levels reflect confidence from marquee investors in the company’s growth trajectory.

While FY25 revenue fell 13.55% YoY to ₹495.71 crore, the company maintained profitability and a healthy balance sheet — factors that market participants see as supportive for long-term growth.

The listing pop reflects investor optimism around the company’s project execution capabilities, sectoral tailwinds in infrastructure spending, and revenue diversification, as outlined in its RHP.

Source: Company RHP, exchange data