Highway Infrastructure IPO: A great opportunity of ₹130 crores – India’s new infrastructure sector star
Whenever we talk about India’s infrastructure sector, one thing is certain – this sector is the backbone of the country’s growth. In such a situation, if a company wants to expand its business by raising money through its IPO, then it becomes a big opportunity not only for the company but also for the investors. Highway Infrastructure IPO has brought such an opportunity, where you can invest in a stable and promising company.
Highway Infrastructure IPO: What is the complete game plan?
Highway Infrastructure is a Madhya Pradesh-based company that works in sectors such as tollway collection, EPC infrastructure projects and real estate. Now this company is bringing an IPO of ₹130 crore. This IPO will be open for public from 5 August and will close on 7 August. Its price band has been fixed between ₹65 to ₹70 per share.
Through the IPO, the company will make a fresh issue of ₹97.52 crore and an offer-for-sale (OFS) of ₹32.48 crore, in which the promoters will sell some of their shares in the market.
Big investors showed trust
On August 4, a day before the IPO opened, the company raised ₹23.4 crore from its anchor book. 4 big institutional investors participated in it. The most prominent name is HDFC Bank. Apart from this, VPK Global Ventures Fund has invested ₹8.4 crore (12 lakh shares), while Abans Finance and Sunrise Investment Opportunities Fund have bought 7.14 lakh shares of ₹5 crore each.
These investments indicate that the trust of institutions on the company is strong – which is also a positive signal for retail investors.
What benefits will the company get from the IPO?
Out of the Rs 130 crore fund raised from the IPO, Rs 65 crore will be used for working capital needs, and the rest of the money is kept for general corporate purposes. Company’s Managing Director Arun Kumar Jain has said that these funds will help strengthen EPC operations, upgrade tolling infrastructure and explore new business opportunities.
Company’s Business Model and Financial Health
The business model of Highway Infrastructure is quite diversified, but the major part of the revenue comes from toll collection. As of FY25, 77% of the company’s total revenue was from tollway, 21% from EPC infra segment and the rest from real estate.
The company’s revenue grew at a CAGR of 4.36% between FY23 and FY25 to reach ₹495.7 crore. Whereas net profit grew at a CAGR of 27.4% to ₹22.4 crore. This clearly shows that the company is not only growing but also improving its profitability.
The company’s consolidated order book stood at ₹666.3 crore at the end of FY25 – with a contribution of ₹59.53 crore from the tollway business and ₹606.8 crore from the EPC infra segment. This strong order book can be used to gauge the company’s future growth prospects.
IPO Management and Registrar
The lead manager of this IPO is Pantomath Capital Advisors – known for its experience and credibility in the market. The responsibility of the Registrar has been given to Bigshare Services. Both the institutions are experts in their work, who will help in executing the IPO smoothly.
Should you invest in Highway Infrastructure IPO?
If you are a long-term investor, or if you see growth potential in the infrastructure sector, then Highway Infrastructure IPO can be a good option. The company’s consistent financial performance, strong order book, and trust of big institutions – all these together make this IPO even more attractive.
In the price band of ₹65-₹70, this IPO seems to be at a fair valuation. And when big names like HDFC Bank are investing in it, it is a confidence booster for retail investors as well.
Disclaimer:
This article is for informational purposes only. It is not a financial advice of any kind. Before investing in the stock market, definitely consult your financial advisor. Investment in the market is always associated with risk. This article has been written keeping in mind Google search engine policies.
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