Highway Infrastructure Ltd (HIL) has launched its Initial Public Offering (IPO), opening the window for investors from August 5 to August 7, 2025, with a listing scheduled for August 12 on both BSE and NSE. The public issue is worth ₹130 crore, comprising a fresh issue of 1.39 crore equity shares aggregating ₹97.52 crore, and an offer for sale of 46 lakh shares totaling ₹32.48 crore. Priced at ₹70 per share, the IPO has attracted attention due to its promising fundamentals and the potential for strong listing gains.
Retail investors are required to apply for a minimum lot of 211 shares, which means an initial investment of ₹13,715. For non-institutional investors (NII), the minimum commitment is higher: 2,954 shares for small NIIs costing ₹2,06,780, and 14,348 shares for large NIIs at ₹10,04,360. Prior to the IPO, the company successfully raised ₹23.40 crore from anchor investors, indicating robust institutional confidence.
HIL operates in key infrastructure domains like toll collection, EPC (engineering, procurement and construction), and real estate, with toll operations being its primary revenue driver. The company has demonstrated solid financial growth over the past three years. In FY23, it recorded ₹456.83 crore in revenue with a net profit of ₹13.80 crore. This grew to ₹576.58 crore revenue and ₹21.41 crore profit in FY24, followed by ₹504.48 crore revenue and ₹22.40 crore profit in FY25. The average earnings per share over this period stands at ₹3.13, with an impressive Return on Net Worth (RoNW) of 19.71%.
On valuation metrics, the IPO is priced at a P/E ratio of 22.44 based on FY25 earnings and 23.41 on FY24 numbers. These are seen as reasonable relative to industry peers. This, coupled with the company’s consistent financial performance and sectoral tailwinds, suggests the IPO is sensibly priced.
In the grey market, the IPO is currently trading at a ₹40 premium, indicating an expected listing price of ₹110 — a gain of over 57% from the issue price. While grey market trends can’t guarantee future performance, they often reflect investor sentiment and current demand.
The funds raised through the IPO will primarily support working capital requirements (₹65 crore), with the balance directed towards general corporate purposes.
Bajaj Broking has rated the IPO as ‘Subscribe for Long Term’, citing HIL’s strong position in toll and real estate segments, steady income streams, and consistent growth. The firm, however, urged investors to evaluate the overall business model and not base decisions solely on anticipated listing gains.
