Highway Infrastructure IPO opens with strong GMP. Should you subscribe?

The Rs 130 crore IPO of Highway Infrastructure (HIL), a company with nearly three decades of experience in toll collection and EPC infrastructure execution, has opened for subscription on Tuesday with a robust grey market premium (GMP) of 57%. The issue, which closes on August 7, is priced in the band of Rs 65–70 per share. The stock is scheduled to list on NSE SME on August 12.

The IPO comprises a fresh issue of Rs 97.5 crore and an offer for sale of Rs 32.5 crore, aggregating to 1.86 crore shares. Bids can be placed in lots of 211 shares, translating into a retail minimum investment of Rs 14,770 at the upper price band.

HIL 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 Rs 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.

HIL reported a FY25 net profit of Rs 22.4 crore, up 4.6% YoY, on revenues of Rs 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 Rs 502 crore.

The proceeds will be used to meet working capital needs and for general corporate purposes. Pantomath Capital is the sole book-running lead manager, and Bigshare Services is the registrar.

Should you subscribe?

Backed by steady financials, technological adoption in tolling (such as FASTag and ANPR), and government tailwinds in infrastructure, the issue has been rated “Subscribe for Long Term” by Anand Rathi.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)