Highway Infrastructure files draft papers for an IPO

Highway Infrastructure Limited was able to access capital markets for additional growth prospects, grow its operations, and draw in more investors as a result of this transformation. The company has established itself as a leader in the sector thanks to its dedication to innovation and excellence in infrastructure development. Highway Infrastructure Limited has a solid base and a clear strategic direction, which will position it for long-term success and steady growth. The company that develops and manages infrastructure also works in real estate, EPC infrastructure, and tollway collection.

Highway Infrastructure Initial Public Offering:

The September 24 draft papers for the Highway Infrastructure IPO state that it consists of an offer by the promoters to sell 31 lakh equity shares and a new issuance of equity shares valued at Rs 105 crore. As per draft papers filed on September 24, the IPO consists of an offer-for-sale (OFS) of 31 lakh equity shares by promoters in addition to a fresh issuance of equity shares worth Rs 105 crore. Promoters Arun Kumar Jain and Anoop Agrawal will make 15.5 lakh equity shares available for purchase in the offer-for-sale (OFS). Their respective ownership stakes in the company are 34.53% and 37.25%.

Highway Infrastructure will use the proceeds from the IPO:

Highway Infrastructure will use the remaining IPO funds for general corporate purposes and will use Rs 63 crore of the net fresh issue proceeds for working capital requirements. The selling shareholders will receive the offer-for-sale (OFS) money.

Highway Infrastructure Financials and Order Book:

As of August 2024, the company’s consolidated order book stood at Rs 596.4 crore, with Rs 314.96 crore coming from the tollway collection business and Rs 281.4 crore from the EPC infra business. The company’s toll collection segment has contributed to its recent strong financial performance. In fiscal 2024, net profit increased to Rs 21.4 crore from Rs 13.8 crore the year before, a 55.2% increase. During the same period, revenue from operations climbed by 26% to Rs 573.5 crore. Earnings before interest, tax, depreciation, and amortization, or EBITDA, increased by 38.8% to Rs 38.4 crore for the fiscal year that ended in March 2024. The margin increased by 62 basis points to 6.7 percent from the previous fiscal year.

Conclusion: Highway Infrastructure plans to raise money through an initial public offering (IPO), in which its principal promoters, Arun Kumar Jain and Anoop Agrawal, will sell their shares. The remaining funds will be used for joint venture purposes, with Rs. 63 crore set aside as working capital.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.