About Highway Infrastructure Limited
Highway Infrastructure Limited is a company that mostly earns money by collecting toll on highways. They also build roads, bridges, and some real estate projects. They are now bringing an IPO (Initial Public Offering), which means they are offering their shares to public investors for the first time. The company will use the money raised to help with its business and for general needs.
Please read the DRHP for more details: SEBI | HIGHWAY INFRASTRUCTURE LIMITED
IPO Details
| Details | Information |
|---|---|
| Issue Price | ā¹65 to ā¹70 per share |
| Face Value | ā¹5 per share |
| Minimum Lot Size (Retail) | 211 shares (ā¹14,770 at the highest price) |
| Maximum Retail Investment | 13 lots (2,743 shares / ā¹192,010) |
| Fresh Issue | Up to ā¹97.52 crore |
| Offer for Sale (OFS) | 46.4 lakh shares (up to ā¹32.48 crore) |
| Total IPO Size | 1,85,71,428 shares (up to ā¹130 crore) |
| Issue Type | Both Fresh Issue & Offer for Sale |
| Listing | BSE & NSE stock exchanges |
IPO Timeline
| Event | Date |
|---|---|
| IPO Open Period | 5th Aug ā 7th Aug 2025 |
| Allotment Date | 8th August 2025 |
| Refund Date | 11th August 2025 |
| Shares in Demat | 11th August 2025 |
| Listing Date | 12th August 2025 |
Check the Allotment Status: Big Share Online
Key Financial Metrics (from NSDL)
Here is how the company did financially over the past three years. All figures are for the financial year ending March.
| Financial Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue From Operations (ā¹ crore) | 455.1 | 573.4 | 495.7 |
| EBITDA (ā¹ crore) | 27.6 | 38.4 | 31.3 |
| EBITDA Margin (%) | 6.1% | 6.7% | 6.3% |
| Profit After Tax (PAT, ā¹ crore) | 13.8 | 21.4 | 22.3 |
| PAT Margin (%) | 3.0% | 3.7% | 4.4% |
| ROCE (Return on Capital Employed) | 19.5% | 24.5% | 16.6% |
| Return on Equity (ROE) | 18.5% | 21.4% | 19.0% |
| Net Worth (ā¹ crore) | 74.8 | 100.2 | 117.7 |
| Debt-to-Equity Ratio | 0.85 | 0.69 | 0.61 |
| Earnings Per Share (ā¹) | 2.03 | 3.28 | 3.40 |
What do these numbers mean?
- Revenue: The total money earned from the business.
- EBITDA: Shows profit before interest, taxes, and certain other costs.
- PAT: The final profit after all expenses.
- ROCE/ROE: Tells you how well the company uses investorsā money to generate profits.
- Earnings per share (EPS): Profit for each share.
Other Important Information
- Most of the companyās money (about 77%) comes from operating tollways (collecting fees from vehicles on highways).
- The company mainly works in Madhya Pradesh and Maharashtra.
- The IPO is both a fresh issue (new shares) and an offer for sale (existing owners selling some shares).
- There are risks: If the government gives fewer contracts, or if projects are delayed, the company may earn less.
- The company wants to use new tech for toll collection and hopes to expand into new road-related businesses soon.
How to Apply and Timeline Steps
- Decide how much to invest. At least 211 shares are needed for application (1 lot), costing ā¹14,770 at the highest price.
- Apply via your broker, bank, or stock trading app between 5th and 7th August, 2025.
- If you get shares after allotment (8th August), they will show in your Demat account by 11th August.
- Shares are listed on the stock market on 12th August, 2025, when you can buy/sell.
Why Some Investors Like This IPO
- Strong order book: Company has committed projects worth ā¹666.3 crore, which means predictable future revenue.
- Experienced company: Has completed many big EPC (engineering, procurement & construction) projects.
- Growing highway sector: More government projects may mean more business.
Points That Need Caution
- Revenue fell this year by 13% compared to last year.
- Margins are not very high compared to some other companies in the same industry.
- Heavily reliant on government contracts for new projects.
If you want to invest, always study the DRHP document (found on NSE/BSE or company website), understand the company, and check if this fits your own investment needs.
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your brokerās app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the companyās IPO you want to apply for.
- Enter how many shares (or ālotsā) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you donāt get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ā¹100 and GMP is ā¹20, people are unofficially ready to pay ā¹120. It hints at the IPOās popularity but isnāt a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the āUpcoming IPOā section.
What are IPO listing gains?
- If the shareās price rises on the first trading day, you can make instant profit.
- Example: You buy at ā¹150, and it opens at ā¹200, you gain ā¹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the companyās background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesnāt guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrarās site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, donāt try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ā¹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone elseās account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Donāt wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.