Highway Infrastructure IPO: The initial public offering (IPO) of infrastructure development and management company Highway Infrastructure is opening for public subscription on Tuesday, August 5 and will remain open until Thursday, August 7.
The ₹130 crore mainboard issue combines a fresh issue of ₹97.52 crore and an offer for sale (OFS) of 46.40 lakh shares with a face value of ₹5 each.
Highway Infrastructure IPO’s price band has been fixed in the range of ₹65 to ₹70 per equity share.
Highway Infrastructure share allotment is expected to be finalised on Friday, August 8, and the stock may be listed on the BSE and the NSE on Tuesday, August 12.
The company intends to use the net proceeds from the fresh issue of shares to fund its working capital requirements and for general corporate purposes.
Highway Infrastructure IPO: 10 key things to know from RHP
Let’s take a look at 10 key things to know from the Red Herring Prospectus (RHP) of the Highway Infrastructure IPO:
1. Promoter selling shareholder
Promoters Arun Kumar Jain and Anoop Agrawal are selling 23.20 lakh shares each in the OFS.
2. Highway Infrastructure’s promoters and promoter groups
According to the RHP, Arun Kumar Jain holds 19,953,582 shares, equivalent to 34.53 per cent of the pre-offer paid-up share capital of the company. Anoop Agrawal holds 21,525,702 shares (37.25 per cent, and Riddharth Jain holds 5,322,264 shares (9.21 per cent) of pre-offer paid-up share capital.
Other than these three promoters, the company has four promoter groups: Jyoti Jain (5 per cent stake), Neetu Agrawal (4.89 per cent stake), Alok Agarwal (3.81 per cent stake), and Arun Jain HUF (0.26 per cent stake).
3. Highway Infrastructure’s management
The company’s board comprises six directors, including two executive directors and four non-executive directors, three of whom are independent directors.
Arun Kumar Jain is the company’s managing director. Anoop Agrawal is the full-time director, and Riddharth Jain is the non-executive, non-independent director.
4. Highway Infrastructure’s business
According to the RHP, Highway Infrastructure is an infrastructure development and management company, engaged in tollway collection, EPC Infra and real estate business.
The company has operated tolls on some of the known interstate and intrastate expressways across 11 states and one Union Territory.
5. Highway Infrastructure’s financial performance
According to the company, as of May 31, 2025, its consolidated order book stood at ₹6,663.07 million, comprising ₹595.30 million in the tollway collection business and ₹6,067.77 million in the EPC Infra business.
Total assets of the company by the end of FY25 stood at ₹2,315.62 million.
Revenue from operations for FY23 stood at ₹4,551.33 million, which rose to ₹5,734.54 million in FY24. In FY25, it stood at ₹4,957.15 million.
The company’s profit in FY23, attributable to the owners, was ₹117.12 crore, which rose to ₹189.62 crore in FY24 and ₹196.70 crore in FY25.
6. Highway Infrastructure’s subsidiaries
Highway & Tandon Tollways Private Limited is the company’s subsidiary. It collects tolls, cess, and service charges on roads and highways at entry points.
It also undertakes the construction and development of various infrastructural projects for governmental, semi-governmental, corporate, and individual clients.
7. Highway Infrastructure’s peers
IRB Infrastructure Developers Limited and H.G. Infra Engineering Limited are the two major peers of Highway Infrastructure.
8. Toll collection industry outlook
The company highlighted that infrastructure development, urbanisation and population growth, policy support, private sector participation, technological advancements, increasing demand for efficient transportation, and the focus on sustainable development are some of the key drivers for the toll collection industry’s growth.
However, traffic congestion, maintenance and upkeep, revenue leakage, and interoperability issues are some of the industry’s key challenges.
9. Key internal risk
As per the RHP, the company derives a significant portion of its revenue from the tollway collection business, which is primarily undertaken for and awarded by the NHAI. Further, most of its revenue in the EPC infra business is from public-sector customers.
“The loss of any of our contracts, particularly in our tollway collection business, may have a material and adverse effect on our business and financial results,” said the company.
The company operates in a highly regulated industry. Failure to obtain or renew approvals, licenses, registrations and permits to operate business in a timely manner and any violations of existing regulations may adversely affect the company’s business.
10. Key external risk
Changing laws, rules, and regulations and legal uncertainties, including tax laws and regulations, may affect a company’s business and financial performance.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
