Highway Infrastructure Ltd IPO: From Business Backbone to Market Listing

India’s infrastructure engine is running full throttle — and Highway Infrastructure Ltd (HIL) is a name that's been quietly but powerfully laying down the tracks (and roads) for that journey. Now, this veteran player is hitting the stock markets with a Rs130 crore Mainboard IPO, and investor excitement is already building up.

Let’s break down what the company does, where it’s headed, and why this IPO deserves a hard look from savvy investors.

Company Snapshot: Highway Infrastructure Ltd (HIL) at a Glance

Established in 1995 and headquartered in Indore, Madhya Pradesh, Highway Infrastructure Ltd has nearly three decades of experience in infrastructure development and management. The company is actively involved in tollway operations, EPC contracts, and a budding real estate segment — with operations spread across 11 Indian states and 1 Union Territory.

Key Business Lines

Tollway Collection

This is the core revenue segment, contributing about 77% of the FY25 turnover.

·        Operates 7 active toll projects

·        Completed 24 toll projects in total

·        Uses automated tech like ANPR & RFID-based ETC

·        Present on high-density corridors such as the Delhi-Meerut Expressway

EPC Infrastructure Projects

This division has completed over 63 projects, with 20 more underway, spanning:

·        Road widening & upgrades

·        Bridge construction

·        Irrigation and civil structures

·        Most work done via in-house engineering teams and owned machinery

Real Estate Development

Though smaller in scale, this segment includes:

·        Gated residential housing

·        Commercial layout development
It contributes to diversification and stabilizes cash flows, while leveraging the company's land bank and project management expertise.

Financial Strength & Growth Trajectory

FY25 Highlights:

·        Revenue: Rs504.48 crore

·        Profit (PAT): Rs22.4 crore

·        Compared to FY24: Rs576.58 crore revenue

·        CAGR FY23–FY25:

o   Revenue: ~4.36%

o   PAT: ~27.4%

Order Book (as of May 2025):

·        Total: Rs666.3 crore

o   EPC: Rs606.8 crore

o   Toll: Rs59.5 crore

Key Ratios:

·        Return on Equity (ROE): ~21%

·        Debt-to-Equity Ratio: ~0.69x

·        EBITDA Margin: 6–7%, with room for operational improvement

Why Investors Should Monitor HIL

·        ? Decades of expertise in executing toll & EPC projects

·        ? Diversified revenue from 3 key business verticals

·        ? Technology-driven toll management improves efficiency

·        ? Benefits from government tailwinds like Bharatmala & Gati Shakti

·        ? Robust order book ensures visibility over the next 1–2 years

Highway Infrastructure IPO: Full Snapshot

IPO Objectives & Use of Funds

·        Rs 65 crore for working capital

·        Rs 32 crore for general corporate purposes

The capital raised will support:

·        Project bidding and pre-qualification

·        EPC expansion

·        Operational cash flow management

Market Sentiment: What’s the Buzz?

As of August 4, the Grey Market Premium (GMP) stood at Rs40 per share, suggesting a potential 57% listing gain (Rs 70 + Rs 40 = Rs 110/share). That’s creating some serious pre-listing heat.

Also, reports indicate:

·        IPO was fully subscribed within 15 minutes in retail and NII categories

·        High confidence from retail investors, with many betting on listing pop

Note: As of opening day, the QIB segment was yet to fully report subscription data — but this may change closer to the closing window.

Strengths vs Risks

Strengths:

·        Strong income from long-term toll contracts

·        Balanced EPC pipeline providing revenue visibility

·        Experienced promoters with sectoral expertise

·        Focus on tech-enabled toll management improves efficiency

Risks:

·        High dependency (77%) on toll revenue
? Sensitive to policy changes, traffic patterns

·        Smaller scale compared to listed peers like IRB Infra or HG Infra

·        EPC execution risks
? Delays, rising raw material costs can pressure margins

·        Grey market sentiment is speculative and may differ from actual listing price

Bottomline: Who Should Consider Applying?

This IPO suits:

·        Growth investors bullish on infra & toll revenue themes

·        Retail investors looking for small-cap IPOs with upside potential

·        Long-term holders interested in India's road infrastructure opportunity

You may want to skip it if:

·        You’re cautious of execution & EPC risk

·        You avoid speculative GMP hype

·        You have limited liquidity or are heavily exposed to IPOs already

Final Take: This IPO Could Be Your Fast Lane to Future Gains

India is planning to invest trillions in infrastructure in the coming decade. And companies like Highway Infrastructure Ltd are literally building that foundation.

With nearly Rs666 crore in order backlog, a tech-enabled toll system, and a firm grip on execution — HIL seems primed for scalable growth. If you’re betting on India’s roads, this IPO might just be your fast lane to wealth creation.

Don’t Miss the Bus — or the Toll!

Between solid order books, a reasonable valuation, and strong grey market momentum, Highway Infrastructure IPO is heating up fast.
If you’re sitting on the fence, this might be your last call before the fast lane leaves you behind.

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