Highway Infrastructure Ltd IPO

The company derives significant portion of revenue from operations from its tollway collection business which is primarily undertaken for and awarded by the NHAI. Further, most of the company revenue in the EPC Infra business is from public sector customers. The loss of any of its contracts, particularly in the company tollway collection business may have a material and adverse effect on its business and financial results.

Its business is relatively concentrated in certain specific parts of India and any adverse development in such parts of India may adversely affect the company business, results of operations and financial condition.

The contracts awarded by NHAI are typically for a standard period of one year. Such limited tenures with limited scope of extension or roll-over may limit over revenue collection and have a material effect on its business and results of operations.

Its business is capital driven. If the company experience insufficient cash flows to meet required payments on its debt and funding working capital requirements, there may be an adverse effect on the results of the company operations.

Its Promoters and certain of the company Key Managerial Personnel may have interest in entities, which are engaged in lines of business similar to that of the Company including its Group Companies which have objects similar to that of the Company. Any conflict of interest which may occur between its business and the activities undertaken by such entities could adversely affect the company business and prospects.

The company has entered and may continue to enter into projects with its related parties such as the company Group Companies and Subsidiary, which may involve conflicts of interest.

Working capital involves frequent and ongoing funds movements as per the requirement. The projected working capital represents funds in motion and are relatively difficult to be monitored and may not always be used as projected.

Working capital projections made by the Company are based on its management's assumptions and estimated working capital requirements. A substantial amount of Offer Proceeds out of the Fresh Offer is intended to be used for working capital. The company may requires alternate funding in Fiscal 2026 post the utilization of Net Proceeds and if the Company is unable to raise sufficient working capital, the operations of the Company will be adversely affected.

The Company will not receive any proceeds from the Offer for Sale.

The proforma consolidated financial information included in this Red Herring Prospectus has been certified by Independent Chartered Accountant who is not the statutory auditor of the Company and may not accurately reflect our results of operations, financial position and cash flows.