Highway Infrastructure IPO: Record-Breaking Day 1 Subscription & Future Prospects
The Highway Infrastructure IPO has garnered significant attention, making headlines for its record-breaking Day 1 subscription status. This article explores the overwhelming response across various categories, including the impressive QIB subscription, and discusses future opportunities, allotment chances, and listing gain expectations based on the current Grey Market Premium (GMP).
Key Details of Highway Infrastructure IPO
The IPO features a face value of ₹5 per share, with the allocation price set at the cut-off of ₹70 per share. Investors are required to apply for a minimum of 211 equity shares per lot. The total issue size is ₹130 crore, categorized as a small issue. This comprises a fresh issue of ₹97.52 crore, which will go to the company, and an Offer for Sale (OFS) of ₹32.48 crore, where promoters and existing shareholders are selling their stake.
Notably, 40% of the shares are reserved for retail investors, which is higher than the typical 10-35% seen in other IPOs. The remaining 60% is split between Qualified Institutional Buyers (QIBs) at 30% (including anchor investors) and High Net-worth Individuals (HNIs) at 30%. This is a book-building IPO slated for listing on both BSE and NSE.
Anchor investors were allocated 3,342,856 equity shares worth approximately ₹23.40 crore on August 4th. These shares have a lock-in period, with 50% available for sale after 30 days (expected September 7th) and the remaining 50% after 90 days (expected November 6th). For minimum one lot, an investment of ₹14,770 is required. Small HNI category requires ₹206,780, while the Big HNI category requires ₹14,360.
Day 1 Subscription Status: A Deep Dive
The Highway Infrastructure IPO was oversubscribed within the first few minutes of Day 1. The QIB category saw approximately 5 times subscription, with bids for 11,297,921 equity shares against 228,571 shares offered, amounting to approximately ₹80.79 crore. This strong response from QIBs is considered a positive indicator.
The HNI category was oversubscribed 35.39 times, attracting bids for 19,718,700 equity shares against 5,571,000 shares offered, totaling ₹1380 crore. Within HNIs, the Big HNI category was subscribed 67.37 times (11,953,783 bids for 1,857,143 shares, ₹836 crore), while the Small HNI category saw 20.91 times subscription (7,764,900 bids for 3,714,000 shares, ₹543 crore).
Retail investors showed significant interest, subscribing 30.38 times, with bids for 22,567,146 equity shares against 7,428,572 shares offered, amounting to ₹1579 crore. Overall, the Highway Infrastructure IPO achieved an impressive 28.51 times subscription on Day 1. Against 15,200,000 shares offered, bids were received for 43,410,000 shares, with a total bid value of ₹338 crore. This exceptional performance has broken all previous Day 1 subscription records for mainboard IPOs in June and July.
Allotment Chances: Where to Apply?
Given the high subscription numbers, allotment chances are generally low. However, within the HNI category, Big HNI investors currently have the highest probability of receiving an allotment, estimated to be 12-13 times higher. Small HNI investors also have relatively better chances. For retail investors, with a 30.38 times subscription, approximately 1 out of every 18 applications might receive an allotment. Due to the overall high subscription of 28.51 times, increasing the chances of allotment will require strategic planning. Investors are advised to wait for the Day 2 subscription figures to make informed decisions.
Grey Market Premium (GMP) and Listing Gain Expectations
As per the latest reports, the Grey Market Premium (GMP) for Highway Infrastructure IPO is ₹40. Considering the issue price of ₹70, the expected listing price stands at ₹110, indicating a potential listing gain of approximately 57%. For a single lot, this translates to an estimated gain of ₹8,440. While current GMP suggests strong listing gains, the market is exhibiting high volatility. Therefore, it is crucial to monitor Day 2 and Day 3 subscription numbers, market conditions, and GMP trends before making an application decision.
Important Dates for Highway Infrastructure IPO
Here are the important dates for the Highway Infrastructure IPO:
- IPO Open Date: August 5th (Day 1 concluded)
- Day 2 Application: August 6th
- IPO Close Date: August 7th
- Allotment Finalization: August 8th
- Refund Initiation (if no allotment): August 11th
- Shares Credit to Demat Account: August 11th
- Listing Date (BSE & NSE): August 12th
Application Strategy and What to Expect Next
Given the overwhelming Day 1 subscription and the current volatile market conditions, it is recommended to adopt a ‘wait and watch’ approach. Potential investors should monitor the Day 2 subscription status, especially the sustained interest from QIBs, before finalizing their application strategy for the Highway Infrastructure IPO. This will help in making a more informed decision and potentially improve allotment chances.
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