The Highway Infrastructure IPO has concluded its second day of bidding, generating significant interest across all investor categories. This article provides a detailed update on the IPO’s subscription status as of the end of Day 2, analyzes the allotment probabilities, and discusses the latest Grey Market Premium (GMP) trends.
Key IPO Details
The Highway Infrastructure IPO was open for applications on August 5th and August 6th, with August 7th marked as the final day to apply. The company has set the face value of its shares at ₹5, with a cut-off price of ₹70 per equity share. Investors need to apply for a minimum of 211 equity shares as one lot.
The total issue size of the IPO stands at ₹130 crore, comprising a fresh issue of ₹97.52 crore and an Offer For Sale (OFS) of ₹32.48 crore. The relatively smaller issue size has contributed to the high subscription figures observed. The IPO is a book-building issue and is slated for listing on both the BSE and NSE exchanges.
Regarding share allocation, 30% is reserved for Qualified Institutional Buyers (QIBs), 40% for Retail Investors, and 15% for High Net-worth Individuals (HNIs) and Small HNI (SAI) categories. Anchor investors were already offered 3,342,856 equity shares, all of which have been allocated, valued at ₹23.40 crore.
Category-Wise Subscription Status as of Day 2 End
The IPO witnessed a strong response from investors, with all categories showing robust oversubscription.
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Qualified Institutional Buyers (QIBs): The QIB portion was subscribed 6.86 times by the end of Day 2. Against 22,85,714 equity shares available, bids were received for 1,52,99,25 equity shares, totaling ₹107 crore. While Day 1 saw strong momentum, the response on Day 2 indicates a continued positive trend, though a subscription of 10-12 times would have been considered even better. The final picture for QIB response will become clearer by tomorrow (August 7th) between 12 PM and 2 PM.
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High Net-worth Individuals (HNIs): The HNI category displayed exceptional interest, oversubscribing by 101.70 times. Against 55,71,000 equity shares, bids were placed for 5,66,61,834 equity shares, amounting to ₹396.6 crore.
- Big HNI: This sub-category alone saw over 90 times subscription.
- Small HNI: The Small HNI portion was subscribed 124 times (previously 123+ times). Against 18,57,143 equity shares available, bids were received for 2,29,58,572 equity shares, valued at ₹160.6 crore.
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Retail Investors: Retail participation also remained strong, with the retail portion subscribed 76.90 times (or approximately 77 times). Against 74,28,572 equity shares, bids were received for 5,71,27,785 equity shares, totaling ₹399.8 crore. This represents a significant increase from the Day 1 subscription of 30 times.
Overall Subscription: The Highway Infrastructure IPO was subscribed 75.73 times (approximately 76 times) by the end of Day 2. A total of 21 lakh applications were received, with bids for 11,53,18,842 equity shares against 1,52,85,728 shares available, amounting to ₹872 crore. This shows a strong positive momentum across all categories compared to the Day 1 overall subscription of 28 times.
Allotment Chances
Given the high subscription rates, securing an allotment in the Highway Infrastructure IPO will be challenging. For Retail Investors and Small HNI categories, the chances of allotment are considerably low due to massive oversubscription. However, for the HNI category, specifically, it is estimated that approximately 1 in 18 applications might receive an allotment, indicating a relatively better chance compared to other categories if you have sufficient funds.
Grey Market Premium (GMP) Analysis
The Grey Market Premium (GMP) for Highway Infrastructure IPO is currently trading at ₹34. Based on the cut-off price of ₹70, the expected listing price is ₹104 (₹70 + ₹34). This suggests a potential listing gain of approximately 49%. For a single lot of 211 shares, investors could potentially see a listing gain of around ₹7,174.
If you are fortunate enough to receive an allotment, the IPO has the potential to deliver a healthy listing gain based on the current GMP trends. Investors are advised to stay updated for any further developments regarding the IPO’s GMP and subscription figures.
