The Highway Infrastructure Limited IPO is one of the most anticipated infrastructure IPOs of 2025. With a proven track record in tollway collection, engineering, procurement and construction (EPC) projects, and real estate development, the company is poised to raise significant capital through a mix of fresh issue and offer for sale (OFS).
Operating across multiple Indian states and one union territory, Highway Infrastructure Limited (HIL) is among the few toll operators with a national footprint. Its diversified revenue base and technology-driven operations make it a strong candidate for long-term growth in India’s infrastructure development sector.
Highway Infrastructure Limited Business Verticals
Incorporated in 2006, HIL operates three primary business segments:
Tollway Collection: Managing toll plazas across national highways, ring roads, and expressways.
EPC Infra Business: Executing highway and bridge construction projects for government agencies.
Real Estate Development: Developing gated residential communities and commercial complexes.
The company has deployed advanced technologies such as Automatic Number Plate Recognition (ANPR), RFID tags, and digital payment platforms for seamless toll collection. Its ability to manage multiple toll operations and EPC infra projects simultaneously gives it a competitive edge in the market.
IPO Details
| Parameter | Details |
|---|---|
| IPO Type | 100% Book Built Issue |
| Fresh Issue Size | Up to ₹975.20 crore |
| Offer for Sale (OFS) | 46.4 lakh equity shares by promoters |
| Face Value | ₹5 per equity share |
| Price Band | ₹65 - ₹70 |
| Lot Size | 211 |
| Listing | NSE and BSE (BSE is the designated stock exchange) |
| IPO Opens | August 5, 2025 |
| IPO Closes | August 7, 2025 |
| Anchor Investor Bidding | August 4, 2025 |
Objects of the Issue
| Use of Proceeds | Amount |
|---|---|
| Funding working capital requirements | Up to ₹650 crore |
| General corporate purposes | Up to 25% of the gross proceeds |
The company will not receive any proceeds from the Offer for Sale (OFS).
Promoters and Shareholding
Promoters of Highway Infrastructure Limited are Arun Kumar Jain, Anoop Agrawal, and Riddharth Jain.
Arun Kumar Jain will sell up to 23.2 lakh shares in the OFS.
Anoop Agrawal will sell up to 23.2 lakh shares in the OFS.
Weighted average cost of acquisition of the promoters’ shares ranges between ₹0.51 – ₹0.74 per equity share.
Revenue Split and Overview
Highway Infrastructure Limited (HIL) operates in three major business segments that drive its revenue. The Tollway Collection Business is the company’s core area, contributing around 77% of revenue in FY25, with operations across national highways and key expressways. The EPC Infra Business, which focuses on executing large-scale engineering, procurement, and construction projects for roads and bridges, accounts for 21% of revenue. Additionally, HIL’s Real Estate Business, which includes the development of residential and commercial properties, contributes about 1.5% of total revenue. The company currently manages several strategic toll operations, including the prominent Delhi–Meerut Expressway, and has a strong presence in states such as Madhya Pradesh, Maharashtra, Uttar Pradesh, Gujarat, and Haryana.
Financial Highlights
Financials (₹ in Crore)
| Metric | FY23 | FY24 | FY25 |
| Revenue from Operations | 4,551.33 | 5,734.54 | 4,957.15 |
| Profit After Tax (PAT) | 138.00 | 214.14 | 223.98 |
| Net Worth | 748.11 | 1,001.85 | 1,177.22 |
| Total Borrowings | 633.60 | 696.22 | 718.15 |
| Earnings Per Share (EPS) (₹) | 2.03 | 3.28 | 3.40 |
| Return on Net Worth (RoNW) (%) | 12.95 | 17.34 | 19.03 |
Financials: Key Insights
Revenue peaked in FY24 at ₹5,734.54 crore, then marginally declined in FY25 due to project timing.
PAT has shown consistent growth, rising from ₹138 crore in FY23 to ₹224 crore in FY25.
RoNW improved significantly to 19.03% in FY25, indicating stronger profitability and efficient use of equity capital.
Valuation
The industry peer group P/E multiples for comparable infrastructure companies currently range from 14.00x for H.G. Infra to 44.38x for IRB Infra, with the average valuation standing at 29.19x. In terms of financial strength, Highway Infrastructure Limited (HIL) has a solid Net Asset Value (NAV) per share of ₹20.37 for FY25, reflecting its strong balance sheet position and consistent growth in shareholder value.
Strengths
Large-Scale Tollway Collection Business with presence across multiple Indian states.
Diversified Revenue Base across tollway collection, EPC infra business, and real estate development.
Technology-Driven Operations: ANPR, RFID tags, digital payment platforms, and contactless toll systems.
Established EPC Capabilities: Strong track record in executing complex highway and bridge projects.
Real Estate Business Adds Value and additional cash flows.
Geographical Spread mitigates single-region dependency.
Consistent Financial Performance with improving RoNW (19.03% in FY25).
Experienced Promoters and Management Team.
Industry Tailwinds: Increased government focus on national highway and expressway development.
Weaknesses / Risks
Dependence on Short-Term Tollway Contracts which may be terminated or renegotiated.
Revenue Volatility due to traffic fluctuations, toll rate changes, or toll suspensions.
Geographical Concentration in five states poses regional risks.
Government Dependence for EPC project land acquisition and clearances.
High Working Capital Requirements may stress cash flows.
Competitive Market with large players like IRB Infra and H.G. Infra.
Regulatory Risks: Changes in government tolling policies and PPP models.
Real Estate Business Vulnerability to market cycles.
Economic Slowdown Impact on traffic volumes, infrastructure projects, and real estate demand.
IPO Allotment and Listing
| Event | Date (Tentative) |
|---|---|
| Basis of Allotment | August 12, 2025 |
| Refunds/Demat Credit | August 13, 2025 |
| Listing Date | August 14, 2025 |
Investors can check their allotment status through Bigshare Services Pvt. Ltd., the IPO registrar, using PAN, application number, or demat account details.
Conclusion
The Highway Infrastructure Limited IPO provides an opportunity to participate in the infrastructure development sector in India. The company’s established presence in tollway collection, its diversified business segments, and a consistent financial performance record position it as a significant player in the industry.
At the same time, there are factors that could impact its operations, such as revenue fluctuations related to tollway contracts and a regional concentration of projects. (This information is presented for general understanding of the IPO and should not be interpreted as investment advice. Investors are encouraged to review the company’s Red Herring Prospectus and make their own informed decisions.)
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