Highway Infrastructure IPO Subscribed Over 27 Times on Day One, GMP Surges Over 57%

On August 5, 2025, Highway Infrastructure Limited (HIL), a Madhya Pradesh-based infrastructure development company, launched its initial public offering (IPO), which was subscribed 27.04 times on the very first day, reflecting tremendous investor interest.

The IPO price band is set between Rs 65 and Rs 70 per share, with a minimum bidding lot size of 211 equity shares. The offer comprises a fresh issue of equity shares worth up to Rs 97.52 crore and an Offer for Sale (OFS) of 46.4 lakh shares by promoters Arun Kumar Jain and Anoop Agarwal, each selling 23.2 lakh shares.

The total bids on Day 1 amounted to over 43.38 crore shares against a mere 1.60 crore shares on offer, leading to a subscription rate of 27.04 times. Retail investors demonstrated strong enthusiasm, with their quota subscribed nearly 28.7 times, while the non-institutional investor segment saw over 33 times subscription. Qualified institutional buyers also placed bids close to five times their reserved portion.

Highway Infrastructure operates primarily in tollway collection, engineering, procurement, and construction (EPC) infrastructure projects, and real estate development. The company has completed 27 tollway projects and currently operates four, employing advanced technologies like Electronic Toll Collection (ETC) and Automatic Number Plate Recognition (ANPR). Its consolidated order book stood at Rs 666.3 crore as of May 2025, predominantly from its core segments.

In financial terms, HIL reported a net profit of Rs 22.4 crore in fiscal year 2025, up 4.6% year-on-year on revenues of Rs 495.7 crore. The EBITDA margin was at 6.3%, and the PAT margin at 4.5%. Post-issue, the company’s price-to-earnings (P/E) ratio stands at 22.5 times, with an estimated market capitalization of Rs 502 crore.

The net proceeds from the fresh issue will be utilized largely to fund working capital requirements and other general corporate purposes.

Pantomath Capital is the sole book running lead manager for the IPO, while Bigshare Services is the registrar. The IPO bidding closes on August 7, with allotment expected to be finalized by August 8. The company plans to list its shares on the BSE and NSE SME platforms by August 12, 2025.

Notably, the Grey Market Premium (GMP) for Highway Infrastructure shares surged over 57% on Day 1, indicating positive investor sentiment and visible demand in the market.