The Highway Infrastructure Ltd. (HIL) IPO is among the most anticipated public issues in India’s infrastructure sector for 2025. Scheduled to open on August 5, 2025, the IPO aims to raise approximately ₹130 crore through a combination of fresh issue and offer for sale. With a strong presence in toll collection, EPC infrastructure, and growing real estate verticals, HIL is drawing attention from investors focused on transport, EPC, and small-cap IPOs.
This comprehensive guide covers every aspect of the IPO—from key issue details and business operations to financial performance, strengths, risks, and whether you should invest.
Summary Table: Highway Infrastructure Ltd. IPO 2025
| Feature | Details |
|---|---|
| Company Name | Highway Infrastructure Ltd. |
| IPO Open Date | August 5, 2025 |
| IPO Close Date | August 7, 2025 |
| Listing Date | August 12, 2025 |
| Price Band | ₹65 – ₹70 per share |
| Face Value | ₹5 per share |
| Lot Size | 211 shares |
| Total Issue Size | 1,85,71,428 shares |
| Fresh Issue | 1,39,14,428 shares (₹97.52 crore) |
| Offer for Sale (OFS) | 46,40,000 shares (₹32.48 crore) |
| Total Issue Amount | ₹130 crore (approx.) |
| Purpose of IPO | Working capital, EPC expansion, operational efficiency |
| Official Website | https://www.highwayinfra.com |
Company Overview: What Does Highway Infrastructure Ltd. Do?
Highway Infrastructure Ltd. (HIL) is a fast-growing infrastructure company operating primarily in three key sectors:
1. Toll Collection
- Contributes 77% of FY25 revenue
- Operates 27 toll plazas, with 4 actively generating income
- Uses advanced ANPR (Automatic Number Plate Recognition) technology for contactless tolling
- Leverages RFID-enabled Electronic Toll Collection (ETC) systems
- Operates high-traffic corridors such as the Delhi–Meerut Expressway and Mokha Expressway
2. EPC Infrastructure Projects
- Handles construction of roads, bridges, irrigation projects, public welfare schemes, and government buildings
- 66 EPC projects completed, 24 projects currently under execution
- Strong focus on Madhya Pradesh: Bhopal, Dhar, Khandwa, Ratlam
3. Real Estate Development
- Develops residential and commercial properties
- Benefits from synergy with EPC business
- Helps diversify income sources
Financial Highlights (As of May 2025)
| Metric | Value |
|---|---|
| Order Book | ₹666.3 crore |
| Tollway Revenue | ₹59.53 crore |
| EPC Revenue | ₹606.77 crore |
| Return on Equity (ROE) | 19.03% |
| Return on Capital (ROCE) | 16.56% |
| PAT Margin | 4.44% |
| EBITDA Margin | 6.32% |
| Debt-to-Equity Ratio | 0.61 |
| Price-to-Book Value | 3.44 |
These figures reflect financial discipline, healthy growth, and balanced capital structure, positioning the company well in the infrastructure sector.
Key Strengths of Highway Infrastructure Ltd.
- Technology-Driven Tolling
Among the first in India to adopt ANPR and RFID-based toll operations. - Strong Track Record
Completed 66 EPC projects with a solid pipeline of 24 ongoing contracts. - Presence in Government Schemes
Active participant in national programs like PMAY, PMGSY, and Jal Jeevan Mission. - Geographic Spread
Operational footprint in 11 states and 1 Union Territory, providing scale and risk diversification. - Long-Term Contracts
Maintains stable revenue through multi-year agreements and repeat clientele. - High-Traffic Corridors
Operates toll booths on major roads like GT Road, Delhi–Meerut, connecting Kandla and Mundra ports.
Sector Outlook and Market Opportunity
India’s infrastructure boom in 2025 is driven by:
- FASTag mandates ensuring digital toll collection
- Public-Private Partnerships (PPP) and asset monetization programs
- Increased CAPEX allocation in the Union Budget for transport and logistics
- Implementation of Toll-Operate-Transfer (TOT) and Hybrid Annuity Models (HAM)
These policies and growth patterns offer a favorable long-term runway for companies like HIL in toll and EPC sectors.
Risks and Challenges
Investors must consider the following risk factors:
- Revenue Dependence on Tolling (77%)
Makes the business sensitive to traffic volumes, economic cycles, and regulatory changes. - Working Capital Intensive Model
Needs continuous bank funding and liquidity management. - Geographic Concentration
High dependency on projects in Madhya Pradesh. - Short-Term Toll Contracts
Most toll contracts span 12 months, requiring regular renewals or rebidding. - Technological Reliance on NHAI Infrastructure
Disruption in NHAI systems (ETC/ANPR) can affect revenue flow. - Fixed-Price EPC Contracts
Increases exposure to raw material price inflation. - Regulatory Hurdles
Highly regulated industry with complex approvals, compliance risks, and political dependencies.
Use of IPO Proceeds
Out of the total issue size of ₹130 crore:
- ₹65 crore will be used to fund working capital requirements
- Remaining amount to support EPC project execution, operational upgrades, and general corporate purposes
This indicates a focus on business expansion and financial efficiency.
Should You Invest in the Highway Infrastructure IPO?
Investment Recommendation: Cautiously Optimistic
Why You Should Consider Investing:
- Strong sector tailwinds in transport infrastructure
- Advanced technology integration (ANPR, ETC)
- Steady EPC project inflow and execution record
- Clean balance sheet and improving margins
- Moderate valuation relative to peers
Points of Caution:
- Short-term toll revenue volatility
- Heavy government dependency
- Limited real estate contribution to diversify earnings
If you are a long-term investor seeking exposure to India’s infrastructure growth story, especially in transport and EPC, this IPO presents a value-driven opportunity. However, investors must account for medium-term volatility and project-specific risks.
Official Links and References
- Company Website: https://www.highwayinfra.com
- SEBI Filing & RHP: https://www.sebi.gov.in
- IPO Registrar: Link Intime India Pvt. Ltd.
Frequently Asked Questions (FAQs)
Q1. What are the Highway Infrastructure IPO dates?
Ans: The IPO opens on August 5, 2025 and closes on August 7, 2025.
Q2. What is the price band of the IPO?
Ans: ₹65 to ₹70 per share.
Q3. How many shares are in one lot?
Ans: 211 shares per lot.
Q4. What is the total issue size?
Ans: ₹130 crore (approx.), including fresh issue and OFS.
Q5. Where will the shares be listed?
Ans: Shares will be listed on NSE and BSE on August 12, 2025.
Q6. What is the objective of the issue?
Ans: To meet working capital requirements and fund project execution.
Q7. Is Highway Infrastructure Ltd. profitable?
Ans: Yes, it reported a PAT margin of 4.44% and ROE of 19.03% in FY25.
Q8. Is there any anchor investor participation?
Ans: Details about anchor allotment will be disclosed prior to the IPO opening.
Final Verdict
The Highway Infrastructure Ltd. IPO is a strong contender among 2025 infrastructure IPOs, thanks to its technological edge, solid financials, and sector-focused growth strategy. It presents a well-structured opportunity for investors looking to ride the wave of India’s road development and toll modernization.
However, due diligence is key. Investors should evaluate their risk appetite, read the Red Herring Prospectus (RHP), and consult financial advisors before applying.
Stay updated on IPOs and public listings at:
https://www.highwayinfra.com
https://www.sebi.gov.in
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