Highway Infrastructure files draft for IPO to raise funds

Highway Infrastructure, based in Madhya Pradesh and specializing in toll collection and EPC infra, has submitted its draft papers to SEBI, seeking to raise capital through an initial public offering (IPO). The IPO will consist of fresh equity shares valued at Rs 105 crore and an offer-for-sale (OFS) of 31 lakh shares from its promoters, according to the filing made on September 24.

Promoters Arun Kumar Jain and Anoop Agrawal are set to sell 15.5 lakh equity shares each through the OFS. They currently hold stakes of 34.53% and 37.25%, respectively. The company is involved in infrastructure development and management, particularly in tollway collection, EPC infra, and real estate.

As of August 2024, its consolidated order book stood at Rs 596.4 crore, including Rs 314.96 crore from toll collection and Rs 281.4 crore from EPC infra. Proceeds from the IPO will be directed towards working capital needs, with Rs 63 crore allocated for this purpose. The remainder of the funds will be used for general corporate activities, while proceeds from the OFS will benefit the selling shareholders.

Highway Infrastructure has reported robust financial performance in recent years, driven largely by its toll collection operations. In FY 2024, the company’s net profit surged by 55.2% to Rs 21.4 crore, compared to Rs 13.8 crore the previous year. Revenue from operations grew 26% to Rs 573.5 crore during the same period.

The company’s EBITDA increased by 38.8% to Rs 38.4 crore for the fiscal year ending March 2024, with margins rising by 62 basis points to 6.7%. Pantomath Capital Advisors has been appointed as the sole merchant banker for the IPO.

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