Highway Infrastructure IPO to Open on August 5: Price Band, Issue Size, Financials and Key Details
- 4th August 2025
- 01:45:00 PM
- 3 min read
Mumbai | August 4 – Highway Infrastructure Limited will launch its initial public offering (IPO) on Tuesday, August 5, with the issue set to close on Thursday, August 7. The IPO is priced in the range of ₹65 to ₹70 per share, with a total issue size of ₹130 crore, according to the company’s filing.
The public offer comprises a fresh issue of ₹97.5 crore and an offer-for-sale (OFS) component of ₹32.5 crore. As per the red herring prospectus (RHP), proceeds from the fresh issue will be utilised to meet working capital requirements for the company’s infrastructure operations.
Founded in 1995, Highway Infrastructure Limited operates in three primary business segments: tollway collection, EPC (Engineering, Procurement and Construction) for road infrastructure, and real estate development. The company has executed 27 toll collection projects to date and is currently managing operations on four tollways.
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According to the RHP, for the financial year ended March 2025, revenue from operations stood at ₹495.7 crore, with a compounded annual growth rate (CAGR) of 4.4% from FY23. The revenue mix was led by tollway operations, contributing ₹382.4 crore (77%), followed by EPC infra at ₹105.5 crore (21%) and real estate at ₹7.8 crore (2%).
The company reported EBITDA of ₹31.3 crore, representing a margin of 6.3%, while profit after tax (PAT) came in at ₹22.4 crore, with a PAT margin of 4.5%. The RHP notes that PAT grew at a CAGR of 27.4% over the past two years.
In terms of operational strength, Highway Infrastructure maintains a healthy order book of ₹666.3 crore as of May 2025. This includes ₹606.8 crore from EPC infrastructure projects and ₹59.5 crore from toll collection projects. The RHP also mentions that the company has completed 66 EPC infra projects, with 24 currently under execution and 4 pending completion certificates.
Among the company’s technological highlights, it is one of the few toll operators in India deploying Automatic Number Plate Recognition (ANPR) technology, which is currently in use on the Delhi–Meerut Expressway. The company plans to diversify into adjacent segments such as way-side amenities and Hybrid Annuity Model (HAM) projects, as outlined in the RHP.
Key performance metrics include:
- ROCE: 16.6%
- ROE: 19%
- Debt-to-equity ratio: 0.61
- Order book to revenue ratio: 1.07x
Valuation-wise, the company is seeking a market capitalisation of ₹502 crore at the upper end of the price band. Based on FY25 earnings, this implies a price-to-earnings (P/E) multiple of 22.4x and EV/EBITDA multiple of 17.8x. The RHP notes that listed peers such as IRB Infrastructure and HG Infra are currently trading at FY27 EV/EBITDA multiples of 9.9x and 8.3x, respectively.
The IPO comes at a time when government-backed infrastructure initiatives such as Bharatmala, NHDP, and the National Monetization Pipeline (NMP) continue to drive project flow in the road development space. According to the RHP, such policy tailwinds could present long-term opportunities for players like Highway Infrastructure.
The company’s focus on toll tech adoption, consistent order inflows, and capital-efficient execution may appeal to investors seeking exposure to India’s ongoing infrastructure expansion. However, valuations remain a key consideration given the premium over sectoral peers.
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.
