If you’ve been monitoring the stock market recently, you might have seen the excitement on Dalal Street when Highway Infrastructure Ltd. (HIL) made its impressive debut. The highly awaited IPO not only fulfilled expectations—it exceeded them dramatically. Debuting with a substantial premium exceeding 67% on the BSE, this listing had investors smiling broadly. But here’s the crucial question: Is now the time to take profits, or should you stay invested for the long term?
Let’s analyze everything—the IPO excitement, the impressive debut, the company’s fundamentals, and professional insights—so you can determine if this stock merits a lasting place in your portfolio
A Dream Beginning: Highway Infra Phenomenal Listing Day
On August 12, 2025, Highway Infra made a striking entrance into the market. Although the grey market suggested respectable gains of about 34%, the actual performance was nearly twice what was anticipated.
- NSE Listing Price: ₹115 per share, reflecting a 64.29% increase from the IPO price.
- BSE Listing Price: ₹117 per share, representing a 67.14% premium.
- Price Range for IPO: ₹65–₹70 per share.
After listing, the company secured a new market capitalization of ₹839.13 crore, solidifying its position as one of the top-performing IPOs of the year
Public Reaction: Over 300x Subscription—A Milestone to Cherish
The ₹130-crore IPO, which was open from August 5 to 7, experienced a tremendous reaction from all types of investors. The subscription figures were astonishing:
- Total Subscription: 300.61 times
- Anchor Investors: Secured ₹23.40 crore prior to the IPO, featuring prominent participants such as HDFC Bank and Abans Finance Pvt Ltd.
This significant oversubscription suggested that the listing would be popular—and it truly was.
Who is Highway Infrastructure Limited?
Established in 1995 and located in Indore, Highway Infrastructure Ltd. (HIL) stands out from typical infrastructure firms. It functions in three primary business sectors:
- Toll Collection – Supervising toll booths in various Indian states.
- EPC (Engineering, Procurement, and Construction) – Constructing roads, highways, and bridges.
- Property Development – Housing and business initiatives.
Their presence covers Madhya Pradesh, Gujarat, Andhra Pradesh, Punjab, Maharashtra, Telangana, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, Odisha, and Delhi—essentially all areas of India.
What’s the Hype? An Examination of the Basics
As of May 31, 2025, HIL’s consolidated order portfolio was robust at ₹6,663 million.
- Tollway Revenue Segment: ₹595.3 million.
- EPC Infra-Division: ₹6,067.80 million.
This solid order book indicates clear revenue certainty for the upcoming years. The firm has adopted ANPR (Automatic Number Plate Recognition) technology, enhancing toll collection speed and boosting efficiency—a significant advantage in the infrastructure industry
Valuation Assessment: Are Our Costs Excessive?
At the maximum IPO price of ₹70, Highway Infra was assessed at a FY25 Price-to-Earnings (P/E) ratio of 22.5x, resulting in a post-issue market capitalization of ₹5,020 million. In context, that is competitive when contrasted with other comparable mid-sized infrastructure firms.
HIL’s business model is appealing due to the combination of toll collection (consistent revenue) and EPC contracts (opportunities for expansion). However, similar to any infrastructure firm, it faces risks related to execution and shifts in government policies
Specialist Insight: Make Wise Choices
Narendra Solanki, Chief of Fundamental Research at Anand Rathi Shares & Stock Brokers, is of the opinion that the strong listing performance was driven by solid fundamentals and investor excitement. His recommendation?
“Investors might think about taking some profits upon listing and retaining the remainder for the long haul.”
That’s a traditional risk-mitigation approach—lock in certain profits now, but maintain an interest in case the expansion narrative persists
Short-Term vs. Long-Term: What’s the Strategy?
- Short-Term Perspective: Following such an electrifying launch, there’s often a possibility of short-term fluctuations. Profit-taking by initial investors may lead to slight declines.
- Long-Term Perspective: With almost 30 years of experience, varied operations, and technology integration, the company is well-prepared for continuous growth. Building infrastructure is a prolonged process, and HIL appears to possess the endurance
Advantages That May Maintain the Stock’s Rapid Pace
- Varied Income Sources – Toll revenue guarantees consistent cash flow, while EPC initiatives provide substantial one-time payments.
- Technological Advantage – ANPR systems for toll collection enhance efficiency and reduce losses.
- Geographical Distribution – Initiatives in various states lessen reliance on a single area.
- Robust Order Book – Clarity regarding upcoming earnings provides significant reassurance to investors.
Risks That May Hinder Its Progress
No stock guarantees a straightforward path to earnings. Here are some obstacles to be mindful of:
- Execution Delays – Any lag in finishing the project may impact revenue.
- Alterations in policy – Modifications to toll guidelines or reductions in infrastructure funding may affect profits.
- Competition – Various local and national infrastructure firms are competing for contracts
Investor Sentiment: Remains in the Positive Range
Market discussions continue to be predominantly optimistic. Numerous retail investors who received allotments are maintaining their positions, whereas those who missed the IPO are looking for entry points after a potential decline. Institutional investors, due to their foundational involvement, may also adopt a long-term approach.
Should You Purchase, Divest, or Retain Highway Infra?
Here’s the straightforward summary:
- If you received IPO allotment: Secure some profits now (since, honestly, a 67% increase in a single day isn’t common) and allow the remaining shares to grow for 1–2 years.
- If You Missed the IPO: Hold off for some stabilization—avoid jumping in at peak post-listing prices.
- For Long-Term Investors: The fundamentals are robust enough to warrant inclusion in your portfolio, as long as you can manage infra-sector fluctuations.
Read More: Supreme Court’s Bold Move: Delhi & NCR Ordered to Remove Stray Dogs Permanently
Conclusion: An Easy Beginning, Yet the Journey is More Important
Highway Infrastructure’s launch is nothing less than a sensation. The blend of solid fundamentals, a substantial order book, technology adoption, and varied business segments creates a captivating narrative. However, keep in mind that today’s surge of excitement is merely the initial lap in an extended competition. The fate of this stock as either a multi-bagger or a temporary surge relies on execution, market dynamics, and government regulations.
Think of this as a marathon rather than a race. Secure some gains, stay alert to the path forward, and relish the journey
