Highway Infrastructure IPO GMP

Highway Infrastructure IPO GMP

As of August 4, 2025, the Grey Market Premium (GMP) for the Highway Infrastructure IPO is ₹40.

Understanding GMP

The Grey Market Premium (GMP) reflects the premium at which IPO shares are traded in the unofficial grey market before they are listed on the stock exchanges. It indicates investor sentiment and potential listing day performance.

Factors Affecting GMP

• Company Fundamentals: Strong financials and growth prospects can attract a higher GMP.

• Market Conditions: Positive market sentiment and a bullish trend often lead to a higher GMP.

• Subscription Levels: High demand and oversubscription typically boost the GMP.

• Industry Trends: IPOs in sectors experiencing rapid growth or positive outlooks may command a higher GMP.

IPO Details

The Highway Infrastructure IPO is a book-built issue aiming to raise ₹130 crore from the market.

• Fresh Issue: The IPO includes a fresh issue of 1.39 crore shares, amounting to ₹97.52 crore.

• Offer for Sale (OFS): There's also an offer for sale of 0.46 crore shares, totaling ₹32.48 crore, from promoters Arun Kumar Jain and Anoop Agrawal.

• Price Band: The IPO price band is set between ₹65 and ₹70 per share.

• Face Value: The face value of each share is ₹5.

• Listing: The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Grey Market Premium (GMP)

• Current GMP: The Grey Market Premium (GMP) for the Highway Infrastructure IPO is currently ₹40.

• Estimated Listing Price: Based on this GMP and the upper price band of ₹70, the estimated listing price is around ₹110.

• Potential Listing Gains: This implies potential listing gains of approximately 57%.

Important Considerations

• Unofficial Market: The grey market is an unofficial, unregulated market, and the GMP is based on speculation.

• Not a Guarantee: The GMP is not an official indicator of the listing price, and the actual listing price may differ.

• Investor Sentiment: GMP reflects the market's perception of the IPO and the company's valuation.

Company Overview

• Industry: Highway Infrastructure Limited operates in the road infrastructure development and toll management sector.

• Experience: The company has experience in highway construction, toll collection, and EPC projects.

• Technology: They utilize technologies like ANPR (Automatic Number Plate Recognition) and RFID for toll collection.

• Order Book: As of May 31, 2025, the company had a consolidated order book of ₹666.31 crore, indicating a strong project pipeline.

Risks to Consider

• Dependence on Tollway Collection: A significant portion of the company's revenue comes from tollway collection contracts, which are primarily awarded by the National Highways Authority of India (NHAI).

• Competition: The company faces competition from other established and emerging players in the infrastructure sector.

• Material Price Fluctuations: Changes in the prices of key construction materials could impact the company's cost structure and profitability.