Highway Infrastructure IPO

About Highway Infrastructure IPO

Highway Infrastructure Limited IPO is an IPO of ₹130 cr. It consists of an offer for sale of up to 46,40,000 equity shares of face value ₹5 each and a fresh issue of up to 1,39,31,428 equity shares of face value ₹5 each aggregating up to ₹ 97.52 crores. The shares will be allotted on Aug 8, 2025. The credit of shares to the demat account will take place on Aug 11, 2025 and the initiation of refunds will take place on Aug 11, 2025.

Highway Infrastructure Limited has close to 30 years of experience in running the tollway collection business and executing EPC infra projects across multiple states in India. Their projects were in Madhya Pradesh, Gujarat, Andhra Pradesh, Punjab, Maharashtra, Telangana, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, Odisha and Delhi. They are one of the few toll operators that have managed tollway collection based on ANPR technology on the Delhi-Meerut Expressway. They have also operated tolls on some of the well-known inter-state and intra-state expressways across different states.

Objective of Highway Infrastructure IPO

• Funding the working capital requirements of the company.
• General corporate purposes.

Industry Outlook

The infrastructure development in India is happening at a commendable pace, be it roads, highways (The National Highway network has witnessed remarkable growth, with a 60% increase from 91,287 kilometers in 2014 to 1,46,145 kilometers by the end of 2023), or real estate (The Residential Real Estate Construction sector contributed 12.2% to total construction industry as of FY23). This in turn has encouraged EPC projects.

India has the second-largest road network in the world, with about 63,31,791km as of FY23. This comprises national highways, expressways, state highways, major district roads, other district roads, and village roads. To accelerate the country’s growth, the development of national highways has been the key focus area.

In such an environment, the outlook of the toll industry remains positive as more and more roads length of km are expected to be completed by 2025 generating revenues in future.

Company Information

Highway Infrastructure Limited is an infrastructure development and management company. They are engaged in the business of tollway collection, EPC Infra and real estate business. While the company’s business spans facets of infrastructure development and management, tollway collection stands out as a significant part of its business, driving their revenues and financial performance, followed by their EPC infra business which comprises executing construction development projects of different types like roads, bridges, tanks, irrigation-related construction and civil buildings, etc., for customers.

Highway Infrastructure Limited is one of the few toll operators that have managed tollway collection based on ANPR technology on the Delhi-Meerut Expressway. The company has operated tolls on some of the well-known inter-state and intra-state expressways across 11 states and one Union Territory. The company employs updated Electronic Toll Collection (ETC) systems, which leverage Radio Frequency Identification (RFID) tags and digital payment platforms to facilitate seamless and contactless toll payments. This model not only reduces congestion at toll plazas but also enhances operational efficiency by reducing transaction times and errors, thereby resulting in overall better management. (Source: CareEdge Report).

Strengths of Highway Infrastructure IPO

• Execution capabilities with industry experience.
• Experienced management team.
• Order book & financial performance.
• Diversified revenue base and portfolio.

Risks of Highway Infrastructure IPO

• 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.
• Any delay or default in payment from their customers in their EPC Infra business and real estate business could result in the reduction of their profits and affect their cash flows.
• Their business is subject to seasonal and other fluctuations that may affect their cash flows and business operations.
• Dependence on third parties for the supply of raw materials, services and finished goods.
• Increase in the prices of construction materials, fuel, labour and equipment could have an adverse effect on their EPC Infra business, results of operations and financial conditions.

Anchor Investor Information: 04 August 2025

*The company in consultation with the Book Running Lead Manager, considers participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Pantomath Capital Advisors Private Limited

Registrar for the IPO is Bigshare Services Private Limited

Business Model

The company earns its revenue through the following sources:

• Tollway collection under which they study and identify potential tollway projects to bid for.
• Develop roadways, bridges and highways. They sometimes sub-contract the EPC Infra projects as well.
• Real-estate business.

Company Growth Trajectory

As on August 31, 2024, the consolidated order book of the company was ₹5,963.83 million, comprising of ₹3,149.59 million in tollway collection business and ₹ 2,814.24 million in EPC Infra business.

Their revenue from operations increased from ₹3,550.27 million in fiscal 2022 to ₹5,734.54 million in fiscal 2024 at a CAGR of 27.09% while their profit for the year increased from ₹85.19 million in fiscal 2022 to ₹214.14 million in fiscal 2024 at a CAGR of 58.55%. Their EBITDA, on a consolidated basis, has grown at a CAGR of 48.88% from fiscal 2022 to fiscal 2024.

As on August 31, 2024, they have completed 24 tollway collection projects and are currently operating 07 tollway collection projects.

Company Market Position

The company has close to 30 years of experience in running the tollway collection business and executing EPC Infra projects over multiple states in India. They are one of the few toll operators who have managed tollway collection based on ANPR technology on Delhi-Meerut Expressway.

There are no listed companies in India that have business composition and segment contributions similar to that of the company. Hence, this positions the company as a pioneer and industry leader.

How To Check Allotment Status of Highway Infrastructure IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Highway Infrastructure Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Bigshare Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Highway Infrastructure Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status