Highway Infrastructure Ltd IPO: All You Need to Know

India’s infrastructure sector is witnessing sustained growth, supported by large-scale government initiatives such as Bharatmala, the National Infrastructure Pipeline (NIP), and PM Gati Shakti. Key growth drivers for toll traffic on national highways include infrastructure development, expansion of national expressways, economic and trade growth, policy support and public investments, technological advancements such as FASTag and GPS-based systems, improved regional connectivity, and a rise in tourism. The outlook for toll traffic remains promising, with a consistent upward trend in both transaction volumes and toll revenue collections.

Particulars	Details
IPO Open Date	August 05, 2025
IPO Close Date	August 07, 2025
Price Band	₹65 to ₹70 per share
Lot Size	211 Shares
Issue Size	₹1300 mln
Listing At	BSE, NSE
Tentative Listing Date	[To be announced]

The EPC infrastructure segment continues to benefit from strong public capital expenditure and sustained demand for transport, irrigation, and civil construction projects across India. Meanwhile, the real estate sector remains stable, with moderate growth driven by selective demand recovery in Tier-2 and Tier-3 cities and relatively steady financing conditions.

Highway Infrastructure Ltd. is an infrastructure development and management company primarily engaged in tollway collection, EPC infrastructure execution, and real estate development. Tollway operations form the cornerstone of the company’s business, contributing the majority of revenue and driving overall financial performance. The EPC segment involves executing a diverse range of civil construction projects including roads, bridges, water tanks, irrigation systems, and buildings for third-party clients. As of May 31, 2025, the company holds a consolidated order book of ₹6,663.07 million, with ₹595.30 million attributable to tollway collection and ₹6,067.77 million to EPC infrastructure contracts. In FY2025, tollway collections accounted for 77.14% of operational revenue, followed by 21.28% from EPC Infra and 1.58% from real estate activities. The company aims to continue leveraging its diversified presence across core infrastructure verticals to capitalize on upcoming growth opportunities.

Highway Infrastructure Ltd. has demonstrated healthy financial performance over FY23-FY25, with a revenue CAGR of 4.36% and EBITDA CAGR of 6.36% during the period. Despite a moderation in revenue in FY25 due to project execution cycles, profitability remains resilient with a stable EBITDA margin of 6.32% and PAT margin improving to 4.44%. Diluted EPS also strengthened from ₹2.03 in FY23 to ₹3.40 in FY25, reflecting consistent earnings growth. Return ratios continue to be appealing, with ROCE at 16.56% and ROE at 19.03% in FY25, reflecting efficient capital deployment. The company has maintained a strong balance sheet, reducing its debt-equity ratio from 0.85 in FY23 to 0.61 in FY25. Operational expansion is also evident, with the number of tolls operated increasing from 7 to 15 and geographic presence growing from 5 to 7 states over the same period.

 Objects of the issue: 

1. Funding Working Capital requirements – INR 650 million
2. General corporate purposes

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