Highway Infrastructure IPO fully booked in 40 minutes, GMP surges
What's the story
Highway Infrastructure Ltd's initial public offering (IPO) has been fully subscribed within hours of its opening today. The three-day IPO was oversubscribed 7.47 times, with bids for 11,97,90,186 shares against the offer of 1,60,43,046 shares. The retail individual investors (RIIs) portion was subscribed 9.63 times while the non-institutional investors' quota was subscribed 7.14 times. At the time of wrting, the GMP for the IPO stood at ₹40, translating to a potential listing gain of 57% over issue price.
Fundraising details
IPO details
Highway Infrastructure Ltd has raised ₹23.4 crore from its IPO's anchor investors, including HDFC Bank and Abans Finance Pvt Ltd. The company plans to use the proceeds from the fresh issue of shares worth ₹65 crore for working capital requirements and the remaining amount for general corporate purposes. The IPO comprises a fresh issue of 1.39 crore shares worth ₹97.52 crore and an offer for sale of 46.4 lakh shares worth ₹32.48 crore by existing promoters.
Company profile
Financials and business model
Founded in 1995, Highway Infrastructure Ltd (HIL) is involved in tollway collection, EPC projects, and real estate development. The Indore-based company specializes in building and maintaining roads, highways, bridges as well as residential projects. It reported a total income of ₹504.48 crore with a profit after tax of ₹22.40 crore. The company's shares will be listed on BSE and NSE on August 12 after the IPO process is complete.