Highway Infrastructure Ltd. IPO: All You Need to Know Before Investing

Written by Kiran Jani

Last Updated on: July 31, 2025

The Indian primary market continues to attract investor interest in 2025, with several infrastructure and tech-driven companies lining up their initial public offerings. One such entrant is Highway Infrastructure Ltd. (HIL) a toll collection and EPC-focused player set to open its IPO on August 5, 2025. This IPO is generating buzz among investors tracking upcoming IPOs in India 2025, especially those related to infrastructure and transport.

In this blog, we break down the key details of the issue, business overview, financials, competitive strengths, and associated risks helping you make an informed decision on whether to invest in the Highway Infrastructure IPO.

Highway Infrastructure Ltd. IPO Details

Investors planning to apply should take note of the following IPO details:

• IPO Open Date: August 5, 2025
  
• IPO Close Date: August 7, 2025
  
• Listing Date: August 12, 2025
  
• Price Band: ₹65 to ₹70 per share
  
• Face Value: ₹5 per share
  
• Lot Size: 211 shares
  
• Total Issue Size: 1,85,71,428 shares
  
• Fresh Issue: 1,39,14,428 shares (up to ₹97.52 Cr)
  
• Offer for Sale: 46,40,000 shares (up to ₹32.48 Cr)
  
• Total Issue Size (₹): ₹130.00 Cr (approx.)
  

Object of the Issue: The company intends to utilize ₹65 Cr from the proceeds to meet its working capital requirements, ensuring smooth execution of its ongoing and upcoming toll and EPC contracts.

This makes the issue attractive to those tracking infra IPOs in 2025 or small-cap IPOs with strong order books.

Company Profile: What Does Highway Infrastructure Do?

Highway Infrastructure Ltd. is an integrated infrastructure development company operating primarily in three business verticals:

1. Tollway Collection (ETC operations)
   
2. Engineering, Procurement, and Construction (EPC) Infrastructure
   
3. Real Estate Development
   

1. Toll Collection: Technology-Driven & Scalable

Toll collection is the largest revenue contributor, accounting for over 77% of FY25 revenues. The company operates 27 toll projects, out of which 4 are currently under operation. It is among the few players in India to adopt ANPR (Automatic Number Plate Recognition) for contactless tolling, reducing congestion and increasing efficiency especially visible in projects like the Delhi-Meerut Expressway.

HIL uses Electronic Toll Collection (ETC) systems with RFID-based transactions, positioning itself well in a rapidly digitizing infrastructure landscape.

2. EPC Infrastructure: Public & Private Projects

The EPC division handles a range of civil infrastructure works such as:

• Roads & bridges
  
• Irrigation projects
  
• Government-funded public welfare schemes
  
• Commercial and civil buildings
  

As of May 2025, the company has completed 66 EPC projects, with 4 awaiting certification and 24 projects currently under execution across key Madhya Pradesh regions like Bhopal, Dhar, Khandwa, and Ratlam.

3. Real Estate Development

Though relatively smaller, the real estate vertical develops residential and commercial spaces. It benefits from synergies with the company’s EPC capabilities and contributes to diversification.

Financial Highlights and Key Metrics

As of May 2025, HIL reported a consolidated order book of ₹6,663.07 million, which includes:

• ₹595.30 million from tollway operations
  
• ₹6,067.77 million from EPC projects
  

Here’s a snapshot of its financial strength:

These numbers indicate a balanced financial structure and healthy returns, especially for a company operating in a capital-intensive sector.

Strengths of Highway Infrastructure Ltd.

For investors looking for IPO investment opportunities in infrastructure, HIL presents several positive factors:

• One of the few toll operators in India to use ANPR technology, streamlining operations on high-traffic routes.
  
• Strong geographic presence across 11 states and 1 Union Territory.
  
• Proven execution track record with 66 completed EPC projects.
  
• Participation in government schemes like PMAY, Jal Jeevan Mission, and PMGSY.
  
• Long-term customer relationships and contracts that ensure revenue visibility.
  
• Use of ETC and RFID-based payments helps reduce operational delays and improve traffic flow.
  
• Operates on high-traffic corridors like GT Road and Mokha Expressway, which link key ports like Kandla and Mundra.
  

Sector Tailwinds & Market Opportunity

Government policies such as FASTag mandates, asset monetization, and the TOT model (Toll-Operate-Transfer) have boosted the toll sector’s long-term outlook. Given India’s rising capex on roads and transport, companies like HIL are likely to benefit from steady project inflows.

For investors tracking India infrastructure growth or 2025 IPO opportunities in EPC sector, this listing offers timely exposure.

Risks and Challenges

Before investing, here are some risk factors to consider:

• High dependency on toll collections, contributing 77% of revenue, makes it sensitive to sector-specific disruptions.
  
• Limited diversification due to the smaller share of real estate in the revenue mix.
  
• The business is working capital intensive, dependent on fund-based/non-fund-based banking facilities.
  
• Overreliance on government contracts can lead to delays due to budget or policy shifts.
  
• Most toll contracts are short-term (12 months), requiring frequent rebidding.
  
• Regional concentration in Madhya Pradesh limits geographic risk mitigation.
  
• Technological dependency on NHAI’s ETC/ANPR infrastructure poses operational risks.
  
• EPC contracts are fixed-price, increasing vulnerability to material cost escalations.
  
• Operates in a highly regulated environment, leading to complex compliance and approval cycles.
  

Should You Invest in Highway Infrastructure Ltd. IPO?

For investors seeking long-term infrastructure exposure, especially in the toll and EPC segment, Highway Infrastructure Ltd. brings a compelling mix of operational scale, technological edge, and a solid order pipeline.

The company is well-positioned in India’s evolving transport infrastructure ecosystem and backed by years of successful execution. However, it remains exposed to risks tied to government dependency and capital intensity.

Investment Outlook: Strong Long-Term Potential

If you’re evaluating upcoming IPOs or small-cap infrastructure IPOs in 2025, HIL offers strong fundamentals for long-term portfolio inclusion. Just be prepared for medium-term volatility due to its sector dynamics.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice or a recommendation to apply for the IPO. Please read the Red Herring Prospectus (RHP) and consult a SEBI-registered financial advisor before making any investment decisions. For detailed disclosures and risk factors, refer to the official filings available on the SEBI website.

https://www.jainam.in/wp-content/uploads/2024/11/Disclosure-and-Disclaimer_Research-Analyst.pdf