Highway Infrastructure IPO: Issue booked 27 times on first day. Check GMP and other details

Highway Infrastructure IPO: The initial public offering of Highway Infrastructure was off to a solid start, with all quotas getting fully subscribed on the first day of the bidding process on Tuesday amid a strong grey market premium (GMP).

Highway Infrastructure IPO opened for subscription on August 5 and will conclude on August 7. Investors have two more days to apply for the mainboard issue.

At the end of the first day of the bidding process, the Highway Infrastructure IPO was subscribed 27.04 times. The issue witnessed bids for 43,38,14,101 shares as against 1,60,43,046 shares on offer.

The retail portion was subscribed 28.69 times, the NII portion 33.45 times and the QIB portion 4.92 times.

Highway Infrastructure IPO GMP continues to trade steadily at ₹40. This means shares of Highway Infrastructure are trading ₹40 above the issue price of ₹70. At the prevailing GMP and the issue price of ₹70, the Highway Infrastructure IPO listing price could be ₹110, a premium of 57.14%.

However, investors must base their decision to invest in a particular IPO on the fundamentals of the company and their own risk appetite. GMP should not be the only guiding factor.

Highway Infrastructure IPO is a mix of fresh share sale of ₹97.5 crore and an offer for sale of ₹32.5 crore. The company is looking to raise a total of ₹130 crore.

The issue is priced in the range of ₹65-70 per share. Investors can apply for the Highway Infrastructure IPO for 211 shares in one lot and multiples thereof. The company plans to use the funds raised from the share sale for funding working capital needs and other general corporate purposes.

Highway Infrastructure Limited are an infrastructure development and management company. Their business includes tollway collection, EPC infrastructure, and real estate. While the company operates across various facets of infrastructure development and management, tollway collection constitutes a significant portion of their business, driving revenues and financial performance, followed by the EPC Infra-segment.

Brokerage Anand Rathi has a 'Subscribe for long-term' rating on the IPO.

"At the upper price band, the company is valued at a FY25 P/E of 22.5x, with a post-issue market capitalisation of ₹5,020 million. It presents a niche opportunity in India’s tollway and EPC infrastructure space, supported by consistent growth and a robust order book. The use of ANPR (Automatic Number Plate Recognition) technology in toll systems provides a competitive advantage, while the combination of toll and EPC businesses offers diversified revenue streams. Considering these factors, the IPO seems fully priced, and a “SUBSCRIBE – LONG TERM” recommendation is suggested," the brokerage opined.

Pantomath Capital Advisors Private Limited is the book-running lead manager while Bigshare Services Private Limited is the registrar to the issue.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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