On the second day of the share sale in the primary market, the Highway Infrastructure IPO is still attracting a lot of attention from investors. Within hours of going up for bid on August 5, the Rs 130-crore maiden share offer was completely subscribed, ending the first day with a 27.04-time subscription rate.
As of 1:30 p.m., Highway Infrastructure Ltd. IPO drew bids for 85 crore shares against 1.60 crore on offer, marking a 52.92x subscription (NSE data). NIIs subscribed 67.29x, retail investors 55.97x, and QIBs 5.54x.
The company earlier raised ₹23.40 crore from anchor investors, including HDFC Bank and Abans Finance.
On Thursday, the IPO will come to an end. The price range for each share has been set at Rs 65–70.
The current price of Highway Infrastructure IPO GMP
In the unregulated market, Highway Infrastructure shares are fetching a GMP of more than 54%, according to websites that monitor gray market activity. A listing gain of 54.29 percent was indicated by Investorgain's GMP of Rs 38 for the company's shares.
Highway Infrastructure Ltd. (HIL) IPO – Should You Subscribe?
India is currently making significant investments in urban development, roads, and highways. Toll collection and EPC (Engineering, Procurement, and Construction) infrastructure are the particular sectors in which HIL works.
What the business excels at:
uses cutting-edge technology, such as RFID devices and ANPR (Automatic Number Plate Recognition), to collect tolls, which speeds up and improves operations.
strong presence in semi-urban connectivity projects and motorways.
90% of its respectable ₹666 crore order book comes from EPC contracts.
Warning signs:
Even while net profit increased in FY25, revenue decreased; this could be the result of short-term issues rather than long-term strength.
In comparison to EPC income, toll revenues are relatively modest.
The P/E ratio in the top price range (₹70) is roughly 22 times FY25 earnings; it is neither overpriced nor a deal.
Professional judgment:
Excellent for investors who plan to hold for a number of years.
The valuation provides minimal "safety cushion," therefore short-term investors should exercise caution.
The recommended strategy is to invest a calibrated amount rather than going all in.