The Active Infrastructures Limited IPO is now open for subscription, starting from March 21, 2025 and closing on March 25, 2025. This book-built issue aims to raise ₹ 77.83 Crores, with an offer size of 43.00 Lakh shares. The allotment date is scheduled for March 26, 2025, and the shares are expected to list on the NSE SME platform on March 28, 2025.

The price band for the IPO is set at ₹178 to ₹181 per equity share, providing Active Infrastructures with a market capitalization of ₹271.77 Crores at the upper price band. The lot size is set at 600 shares, which translates to a minimum investment of ₹1,08,600 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest ₹2,17,200 for 2 lots (1,200 shares).

Active Infrastructures specializes in civil construction, offering top-quality infrastructure solutions with a focus on innovation, sustainability, and excellence. The company's projects contribute to the development of communities and industries across various sectors.

As of March 21, 2025, the Grey Market Premium (GMP) for Active Infrastructures stands at ₹0, indicating no expected listing gain at the moment. The GMP is based on market demand and supply, and is not a definitive indicator of the actual listing price.

The subscription status for the IPO shows a 0.01 times subscription rate on the first day of the subscription period. These figures can change as the subscription period progresses. The allotment date is confirmed as March 26, 2025, and investors can check their allotment status by visiting the registrar's website and entering their application number, PAN, or DP Client ID.

The objectives of the IPO include:

1. ₹ 3,898.04 Lakhs for working capital requirements.
2. ₹ 1,672.34 Lakhs for the repayment/prepayment of borrowings and margin money for bank guarantees.
3. ₹ 704.80 Lakhs for the purchase of construction equipment.
4. General corporate purposes and meeting issue expenses.

The financials of Active Infrastructures show significant growth over the years. For the period ended on Sep 30, 2024, the company reported revenues of ₹3,389.85 Lakh, with an EBITDA of ₹816.56 Lakh and Profit After Tax (PAT) of ₹555.19 Lakh. This indicates a steady increase in profitability.

The pre-issue EPS for FY24 is ₹8.48, with a post-issue EPS of ₹6.96. The P/E ratio of 21.34x pre-issue and 26.02x post-issue is slightly above the industry average of 18x, suggesting that the IPO may be fully priced. The ROCE for FY24 is 14.90%, and the ROE is 36.22%, indicating strong returns on capital and equity.

IPO Review and Conclusion: Given the GMP of ₹0, which suggests no immediate listing gains, and the relatively high P/E ratio compared to the industry, we recommend investors avoid applying for the Active Infrastructures IPO if they are seeking listing gains. However, long-term investors with a positive outlook on the construction sector may still find value in the company’s steady growth and potential future performance.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Rapid Fleet Management Services, Active Infrastructures Limited,Grand Continental Hotels.

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