Highway Infrastructure files draft papers, to raise funds via IPO

Highway Infrastructure IPO

Madhya Pradesh-based toll collection and EPC infra company Highway Infrastructure has filed preliminary papers with the capital markets regulator SEBI to raise funds via an initial public offering (IPO).

The IPO is a combination of fresh issuance of equity shares worth Rs 105 crore, and an offer-for-sale (OFS) of 31 lakh equity shares by promoters, as per draft papers filed on September 24.

Promoters Arun Kumar Jain, and Anoop Agrawal will be selling 15.5 lakh equity shares each in the OFS. They hold 34.53 percent and 37.25 percent stakes respectively in the company.

The infrastructure development and management company involves in the tollway collection, EPC infra and real estate business. The consolidated order book of the company was Rs 596.4 crore as of August 2024, comprising of Rs 314.96 crore in tollway collection business and Rs 281.4 crore in EPC infra business.

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Highway Infrastructure will utilise Rs 63 crore out of the net fresh issue proceeds for its working capital requirements, and the remainder IPO funds for general corporate purposes, while the offer-for-sale money will go to the selling shareholders.

Financial performance of the company remained strong in the past years, boosted by the toll collection segment. Net profit for the fiscal 2024 grew by 55.2 percent to Rs 21.4 crore, compared to Rs 13.8 crore in the previous year. Revenue from operations increased by 26 percent to Rs 573.5 crore during the same period.

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EBITDA (earnings before interest, tax, depreciation, and amortisation) in the year ended March 2024 jumped 38.8 percent to Rs 38.4 crore, with margin growing by 62 bps to 6.7 percent compared to previous fiscal.

Pantomath Capital Advisors is the sole merchant banker to the issue.