Strong order book, proven track record lift Highway Infrastructure IPO 72% on debut — insights from the RHP
- 12th August 2025
- 12:00:00 PM
- 2 min read
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
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
