Highway Infrastructure Limited's Initial Public Offering (IPO) has received tremendous investor support. The issue was subscribed 300.61 times. Retail investors also showed b interest. The issue's Grey Market Premium (GMP) is ₹40, indicating a potential premium of approximately 57% on the listing day.
Highway IPO: Indore-based Highway Infrastructure Limited has made a b entry into the market with its Initial Public Offering (IPO). The company's ₹130 crore fresh issue received overwhelming support from investors, with the issue being subscribed 300.61 times on the final day. The issue was open from August 5th to 8th and closed on August 9th. The issue has also generated significant buzz in the grey market, where its GMP has reached ₹40.
Staggering IPO Subscription Figures
Highway Infrastructure Limited's issue received tremendous response from various investor categories.
- Non-Institutional Investors (NII) bid 447.32 times.
- Qualified Institutional Buyers (QIB) applied 420.57 times.
- Retail Investors (RII) oversubscribed 155.58 times.
These figures are according to the National Stock Exchange (NSE). Overall, investors bid for over 482 crore shares against 1.60 crore shares offered.
₹23.40 Crore Already Raised from Anchor Investors
Just before the IPO launch, Highway Infrastructure Limited raised ₹23.40 crore from anchor investors. These included major institutions such as HDFC Bank and Abans Finance Private Limited. This signaled a positive sentiment in the market regarding the issue, which was later evident in the subscription numbers.
Company Background and Operations
Highway Infrastructure Limited (HIL) was established in 1995 and is headquartered in Indore, Madhya Pradesh. The company is engaged in the construction and maintenance of roads, bridges, highways, and residential projects in the country.
The company's primary areas of operation are:
- Toll Collection Services
- EPC (Engineering, Procurement, and Construction) Projects
- Real Estate Development
The company has worked with several state governments and agencies and has established its presence in the market based on its b technical expertise.
Price Band and Issue Details
The IPO's price band was fixed at ₹65 to ₹70 per share. The total issue size is ₹130 crore, which includes:
- Fresh Issue: 1.39 crore shares, worth approximately ₹97.52 crore
- Offer For Sale (OFS): 46.4 lakh shares, worth approximately ₹32.48 crore
Under this issue, the company will raise capital for its development activities, debt repayment, and general corporate purposes.
Grey Market Premium (GMP) Increases Listing Expectations
According to a Livemint report, the Grey Market Premium (GMP) for Highway Infrastructure Limited's IPO is ₹40. This means that the share is trading in the informal market at ₹110 against the issue price of ₹70.
If this trend continues until listing, investors could receive a premium of approximately 57%, which is considered a significant achievement for any SME IPO.
Where will the Listing Take Place?
The shares of Highway Infrastructure Limited will be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Pantomath Capital Advisors is the lead manager for this issue, and Bigshare Services is playing the role of registrar.
Both these institutions are known in the market for completing the IPO process with transparency, which has further increased investor confidence.
