Highway Infra IPO Day 1: 3.45x Subscribed, GMP Hints 57% Jump

by Priya Bhatiya

Posted on August 5, 2025

Subscription Status (Day 1, 10 AM):

• The IPO is reportedly subscribed 3.45 times so far, reflecting significant investor demand.

Grey Market Premium (GMP) & Listing Pop:

• The GMP for the IPO currently stands at ₹40 per share as of the morning of August 4, 2025, one day before listing.
• With the IPO price band fixed at ₹65–₹70 per share, the grey market indicates a potential listing price of approximately ₹110 per share (at upper band), translating to a possible 57% premium/pop on listing day.

IPO Details:

• Issue Size: ₹130 crore (Fresh Issue ₹97.52 crore, Offer for Sale ₹32.48 crore).
• Price Band: ₹65–₹70 per share.
• Market Lot: 211 shares (minimum investment, ₹14,770 for retail at the upper band).
• Subscription Window: August 5–7, 2025.
• Tentative Listing Date: August 12, 2025 (BSE & NSE).
• Registrar: Bigshare Services Private Limited.
• Lead Manager: Pantomath Capital.

Financial Highlights:

• FY25 revenue: ₹495.7 crore (down 13% YoY).
• FY25 net profit: ₹22.4 crore (up 4.6% YoY).
• EBITDA margin: 6.3% | PAT margin: 4.5%.
• Post-issue P/E: 22.5x; indicative market cap: ₹502 crore.

Key Business Segments:

• Tollway collection and EPC (Engineering, Procurement & Construction) form over 90% of the order book. The company also has a small presence in real estate.
• Operational footprint across 11 states and 1 Union Territory.

Investor Takeaway:

• Strong demand in all categories, with a high oversubscription rate early on Day 1.
• Potential listing gain is high if the current GMP holds, but note that GMP is unofficial and subject to rapid changes.
• Most analysts suggest subscribing for long-term gains, considering the business fundamentals and solid order book, but note the recent revenue decline despite profit growth.

Caution: GMP (Grey Market Premium) is an indicator based on informal market trends and does not guarantee actual listing performance.

In summary: The Highway Infrastructure IPO is off to a robust start, is showing strong signs of oversubscription on Day 1, and is generating considerable buzz thanks to a 57% premium in the grey market, suggesting a potentially sharp listing pop if trends persist.