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Highway Infrastructure IPO — Should You Subscribe Or Avoid? Read Anand Rathi's Report For Key Details

Highway Infrastructure's Rs 130-crore IPO will open for subscription on August 1, and the price band is fixed in the range of Rs 65 and Rs 70 per share.

<div class="paragraphs"><p>The Highway Infrastructure Ltd.'s initial public offering will open for subscription on August 1 (Photo: company website)</p></div>
The Highway Infrastructure Ltd.'s initial public offering will open for subscription on August 1 (Photo: company website)

Highway Infrastructure's Rs 130-crore IPO comprises of a fresh issue of 1.39 crore shares, amounting to Rs 97.52 crore and an offer-for-sale of 46 lakh shares, worth Rs 32.48 crore. The company has fixed the price band in the range of Rs 65 and Rs 70 per share.

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Anand Rathi Report

The Highway Infrastructure Ltd.'s initial public offering will open for subscription on August 1 and closes on Aug 7.

An infrastructure development and management company has fixed the price band in the range of Rs 65 and Rs 70 per share. Investors can place bids starting from a minimum of 211 shares and in multiples thereafter.

The Rs 130-crore IPO comprises of a fresh issue of 1.39 crore shares, amounting to Rs 97.52 crore and an offer-for-sale of 46 lakh shares, worth Rs 32.48 crore.

Shares of Highway Infrastructure will be listed on the BSE and NSE on Aug. 12.

Pantomath Capital Advisors Private Ltd. are the book running lead managers for the public issue.

Objects of the Issue

  1. Funding Working Capital requirements of the company.

  2. General corporate purposes.

Key Strengths

  • Execution capabilities with industry experience

  • Experienced Management Team

  • Order Book & financial performance

  • Diversified revenue base and portfolio

Key Strategies:

  • Continued focus on current business verticals

  • Penetrating newer geographies

  • Venturing into associated business verticals.

Valuation & Outlook:

Highway Infrastructure Limited has an experience close to 30 years of experience in toll collection and executing EPC infrastructure projects across several Indian states, including Madhya Pradesh, Gujarat, Andhra Pradesh, Punjab, Maharashtra, Telangana, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, Odisha, and Delhi.

As of May 31, 2025, the company held a consolidated order book of Rs 6,663.07 million, with Rs 595.30 million from the tollway collection segment and Rs 6,067.77 million from the EPC Infra-division.

This robust pipeline offers strong visibility for revenue planning, operational execution, and timely project delivery. The company aims to further strengthen its tollway collection and EPC Infra-businesses while focusing on improving overall financial performance.

With the government’s growing emphasis on road infrastructure, the total tolling network is projected to expand, supporting increased revenue generation.

At the upper price band, the company is valued at a FY25 P/E of 22.5x, with a post-issue market capitalization of Rs 5,020 million. It presents a niche opportunity in India’s tollway and EPC infrastructure space, supported by consistent growth and a robust order book.

The use of ANPR (Automatic Number Plate Recognition) technology in toll systems provides a competitive advantage, while the combination of toll and EPC businesses offers diversified revenue streams.

Considering these factors, the IPO seems fully priced, and a “Subscribe – Long Term” recommendation is suggested.

Key Risk:

  • The company derives significant portion of revenue from operations from their tollway collection business which is primarily undertaken for and awarded by the NHAI. Further, most of their revenue in the EPC Infra-business is from public sector customers. The loss of any of their contracts, particularly in their tollway collection business, may have a material and adverse effect on their business and financial results.

  • Their business is relatively concentrated in certain specific parts of India and any adverse development in such parts of India may adversely affect their business, results of operations and financial condition.

  • The contracts awarded by NHAI are typically for a standard period of one year. Such limited tenures with limited scope of extension or roll-over may limit over revenue collection and have a material effect on their business and results of operations.

  • The company’s business is capital driven. If they experience insufficient cash flows to meet required payments on their debt and funding working capital requirements, there may be an adverse effect on the results of their operations.

  • The company’s Promoters and certain of their Key Managerial Personnel may have interest in entities which are engaged in lines of business similar to that of their Company, including their Group Companies which have objects similar to that of their Company. Any conflict of interest which may arise between their business and the activities undertaken by such entities could adversely affect their business and prospects.

  • The company has entered and may continue to enter into projects with their related parties such as their Group Companies and Subsidiary, which may involve conflicts of interest.

  • Working capital involves frequent and ongoing funds movements as per the requirement. The projected working capital represents funds in motion and are relatively difficult to monitor and may not always be used as projected.

  • Working capital projections made by their Company are based on their management's assumptions and estimated working capital requirements. A substantial amount of Offer Proceeds out of the Fresh Offer is intended to be used for working capital. They may require alternate funding in Fiscal 2026 post the utilization of Net Proceeds and if their Company is unable to raise sufficient working capital, the operations of their Company will be adversely affected.

Click on the attachment to read the full IPO report:

Anand Rathi IPO Note Highway Infrastructure.pdf
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