Highway Infrastructure IPO
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About Highway Infrastructure
Established in 1995 as Highway Enterprises and restructured as Highway Infrastructure in 2018, the company is an Indore-based infrastructure development firm specializing in toll operations and engineering, procurement, and construction (EPC) services. With nearly three decades of experience, it has executed projects across multiple Indian states, including Madhya Pradesh, Gujarat, Andhra Pradesh, and Delhi. Notably, the company is among the few toll operators in India utilizing Automatic Number Plate Recognition (ANPR) technology on the Delhi-Meerut Expressway. As of the fiscal year ending March 2024, Highway Infrastructure reported an annualized revenue of ₹576.57 crore and a net profit of ₹21.41 crore, reflecting its operational efficiency and market presence.
Financials of Highway Infrastructure
*All figures are in ₹ Crores.
Issue size
| Funds Raised in the IPO | Amount |
| Overall | – |
| Fresh issue | ₹105 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 63 (60%) |
| General corporate purposes | (not above 25% of gross proceeds) |
Strengths
- Nearly 30 years of industry experience in toll operations and EPC projects.
- Pioneered the use of ANPR technology for toll collection on major expressways.
- Diversified project portfolio across multiple Indian states, enhancing market reach.
- Demonstrated financial performance with substantial revenue and profitability.
- Experienced promoters with extensive industry knowledge and established relationships
Risks
- Modest scale of operations compared to larger industry peers.
- High working capital requirements may impact liquidity.
- Susceptibility to risks inherent in tender-based business models.
- Moderate contribution from the EPC segment could affect revenue diversification.
- Exposure to regulatory changes and policy shifts in the infrastructure sector.