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Highway Infrastructure IPO booked 27x on Day 1, GMP over 57%; should you bid?Highway Infrastructure operates primarily in tollway collection, EPC infrastructure projects, and to a smaller extent, real estate development. Proceeds from the IPO will be utilised to meet working capital needs and for general corporate purposes.By Meghna Sen   August 5, 2025, 6:04:49 PM IST (Updated)3 Min ReadThe ₹130 crore initial public offering (IPO) of Highway Infrastructure, a company with nearly three decades of experience in toll collection and EPC infrastructure execution, witnessed strong investor interest on the first day of public bidding.

According to data available on the National Stock Exchange (NSE), the IPO received bids for over 43.38 crore shares against the offer size of 1.6 crore shares.

Retail investors showed keen interest, with their allotted portion subscribed more than 28.7 times. The non-institutional investor (NII) segment saw even higher demand, with subscriptions exceeding 33 times the shares on offer.

Meanwhile, qualified institutional buyers (QIBs) also participated actively, bidding for nearly five times the portion reserved for them.

Highway Infrastructure IPO: GMP today

In the unlisted market, shares of the company were commanding a premium of ₹40, suggesting a grey market premium (GMP) of 57.14% over the issue price of Rs 70 per share.

The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.

Highway Infrastructure IPO details

The issue is priced in the band of ₹65-70 per share. Investors can bid for a minimum of 211 shares and in multiples thereof.

The IPO comprises a fresh issue of ₹97.5 crore and an offer for sale of ₹32.5 crore, aggregating to ₹130 crore.

Proceeds will be utilised to meet working capital needs and for general corporate purposes.

Ahead of the issue opening, the company has raised ₹23.4 crore from institutional investors via anchor book.

VPK Global Ventures Fund has invested ₹8.4 crore against nearly 12 lakh shares in Highway Infrastructure, while HDFC Bank, Abans Finance, and Sunrise Investment Opportunities Fund bought 7.14 lakh shares worth ₹5 crore each.

Company overview

Highway Infrastructure 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 ₹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.

Highway Infrastructure posted a FY25 net profit of ₹22.4 crore, up 4.6% YoY, on revenues of ₹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 ₹502 crore.

Pantomath Capital is the sole book-running lead manager, and Bigshare Services is the registrar.

The allotment for the Highway Infrastructure IPO is expected to be finalised on August 8, while the company's shares will be listed on BSE, NSE with a tentative listing date fixed as August 12.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: Aug 5, 2025 12:38 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIPO