Highway Infrastructure Secures Rs 340.08 Crore Palayam Toll Plaza Contract; Wins Two NHAI Orders Worth Rs 431.86 Crore

Highway Infrastructure Ltd (BSE: 544477; NSE: HILINFRA) has secured two user fee collection contracts from the National Highways Authority of India (NHAI), with a combined value of approximately Rs 431.86 crore. The Palayam Fee Plaza contract, valued at Rs 340.08 crore, is the highest-value contract awarded to the company to date. At its board meeting on October 14, 2026, the company also approved a preferential issue of warrants to the promoter group, an increase in authorised share capital and the acquisition of a controlling stake in Indore Highway Real Estates Private Ltd.

The two NHAI contracts were awarded through a competitive e-tendering process for the operation and collection of user fees at the respective plazas. Both contracts include the upkeep and maintenance of adjacent toilet blocks, including the replenishment of consumables, and are to be executed over one year.

The Palayam Fee Plaza contract in Tamil Nadu is valued at Rs 340.08 crore. The plaza is located at Km 154/500 of NH-44, along the Krishnagiri to Thumbipadi section spanning Km 94.000 to Km 180.000. The second contract, valued at Rs 91.78 crore, relates to the Baiti Kala Fee Plaza in Uttar Pradesh, located at design Km 175.050 on the four-lane Sultanpur–Varanasi section of NH-56, now designated as NH-731.

Separately, the board approved the issuance of up to one crore fully convertible warrants to promoter group members Anoop Agrawal, Riddharth Jain and Tirth Agrawal, aggregating up to Rs 49 crore. Each warrant will be convertible into one equity share with a face value of Rs 5. The board also approved an increase in the company's authorised share capital and the acquisition of a 51 per cent stake in Indore Highway Real Estates Private Ltd.

Commenting on the developments, Anoop Agarwal, Whole Time Director and Chief Financial Officer of Highway Infrastructure Ltd, said the NHAI orders demonstrate the company's capabilities in highway operations and provide greater visibility to its Order Book across two states. He described the Rs 340.08 crore Palayam contract as a significant milestone in the company's growth journey. He added that the promoter warrant issue reflects the promoters' confidence in the business, while the capital-related approvals and acquisition are expected to strengthen the company's financial position and expand its infrastructure presence. The company remains focused on project execution and long-term shareholder value creation.

Highway Infrastructure Ltd was incorporated in 2006 and is headquartered in Indore, Madhya Pradesh. The company operates across infrastructure activities, including the operation and collection of user fees at national highway fee plazas for NHAI. It is expanding its infrastructure presence through investments, including the proposed acquisition of a controlling stake in Indore Highway Real Estates Private Ltd. Its equity shares are listed on BSE Ltd and the National Stock Exchange of India Ltd. 

Disclaimer: The article is for informational purposes only and not investment advice.