Highway Infrastructure Limited - IPO

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

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

3. 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 our business and results of operations.

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

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

6. We have entered and may continue to enter into projects with our related parties such as our Group Companies and Subsidiary, which may involve conflicts of interest.

7. 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.

8. Working capital projections made by our Company are based on our 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. We may require alternate funding in Fiscal 2026 post the utilization of Net Proceeds and if our Company is unable to raise sufficient working capital, the operations of our Company will be adversely affected.

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

10. 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 our Company and may not accurately reflect our results of operations, financial position and cash flows.