Highway Infrastructure IPO: GMP at 54%, subscribed over 97.70x on Day 3; check key details

Economic Times

a day ago

Highway Infrastructure Ltd's ₹130 crore IPO saw strong demand, with a 97.7x subscription by the final day. Shares are trading at a 54% grey market premium over the ₹70 issue price, signaling high investor interest and expectations of strong listing gains.
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The Rs 130 crore initial public offering (IPO) of Highway Infrastructure Ltd (HIL) has grabbed strong investor attention, both in the primary market and the grey market.The grey market activity is heating up, with HIL's shares trading at a premium of nearly 54% over the issue price of Rs 70. This robust grey market premium reflects bullish sentiment and raises expectations of healthy listing gains for investors.On the third and final day of bidding, the issue was subscribed a massive 97.70 times by 10:40 AM, as per stock exchange data — a clear sign of overwhelming demand.The IPO is generating strong interest in the grey market, where shares are trading at a premium of approximately 54%, or about Rs 36-38 above the issue price of Rs 70. This robust premium signals bullish investor sentiment and points to the potential for solid gains when the stock lists.Retail Individual Investors (RIIs) demonstrated robust enthusiasm, subscribing 89.39 times their allocated quota of 78.57 lakh shares. This strong participation highlights the active interest of small investors, who often play a crucial role in shaping IPO market sentiment.Non-Institutional Investors (NIIs), which include high-net-worth individuals (HNIs), also showed a positive response, subscribing 143.74 times their allotted 58.92 lakh shares. Qualified Institutional Buyers (QIBs) subscribed 7.88 times their allocation of 22.92 lakh shares.The Rs 130 crore IPO of Highway Infrastructure (HIL), a company with nearly three decades of experience in toll collection and EPC infrastructure execution, opened for subscription on Tuesday. The issue, which closes on August 7, is priced in the band of Rs 65–70 per share. The stock is scheduled to list on the BSE and NSE on August 12.The IPO comprises a fresh issue of Rs 97.5 crore and an offer for sale of Rs 32.5 crore, aggregating to 1.86 crore shares. Bids can be placed in lots of 211 shares, translating into a retail minimum investment of Rs 14,770 at the upper price band.HIL operates primarily in tollway collection, EPC infrastructure projects, and to a smaller extent, real estate development. As of May 2025, its consolidated order book stood at Rs 666.3 crore, with over 90% of it from its core toll and EPC segments.The company has completed 27 tollway projects and is currently operating four, including ANPR-enabled tolling on the Delhi-Meerut Expressway.Over the years, it has executed 66 EPC projects, with 24 more underway. The company's stronghold lies in Madhya Pradesh but extends to 11 states and one Union Territory.HIL reported a FY25 net profit of Rs 22.4 crore, up 4.6% YoY, on revenues of Rs 495.7 crore. The EBITDA margin stood at 6.3%, with a PAT margin of 4.5%. Its post-issue P/E comes to 22.5x, translating into a market cap of Rs 502 crore.The proceeds will be used to meet working capital needs and for general corporate purposes. Pantomath Capital is the sole book-running lead manager, and Bigshare Services is the registrar.Backed by steady financials, technological adoption in tolling (such as FASTag and ANPR), and government tailwinds in infrastructure, the issue has been rated 'Subscribe for Long Term' by Anand Rathi.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)