Active Infrastructures Ltd, a civil construction company, made its muted debut on the NSE SME platform on March 28, 2025, with its shares listing flat at ₹181 apiece, exactly matching the issue price. The company’s IPO, which mobilized ₹77.83 crore, opened for subscription from March 21 to March 25, 2025. The IPO’s listing price was in line with the grey market expectations, reflecting the company's valuation at ₹271.77 crore.

Active Infrastructures IPO Subscription Details

The subscription for the Active Infrastructures IPO saw a final subscription rate of 1.05 times on its closing day, with investor demand driving the subscription, although not significantly exceeding the issue size. The company offered shares in the price band of ₹178 to ₹181, with a lot size of 600 shares. Retail investors were required to invest a minimum of ₹1,08,600, while High-Net-Worth Individuals (HNIs) had a minimum investment threshold of ₹2,17,200 for two lots (1,200 shares).

Active Infrastructures IPO Allotment and Listing Date

The IPO allotment for Active Infrastructures Ltd is scheduled to be finalized on March 26, 2025, with investors able to check their status online by visiting the registrar’s website. The listing of shares on the NSE SME platform occurred on March 28, 2025, where the stock opened flat at ₹181. This aligns with the company’s grey market performance, which showed a neutral GMP (Grey Market Premium) of ₹0, indicating a lack of significant pre-listing speculation in the market.

Company Overview and Business Segments

Active Infrastructures Ltd operates primarily in two sectors: Infrastructure Development and Commercial Construction. Its projects include road construction, bridges, flyovers, water supply systems, and irrigation works. In commercial construction, the company has built office complexes, retail centers, exhibition halls, and private educational institutions. The company has an ongoing presence in Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura, ensuring regional diversification in its revenue streams.

IPO Objectives and Use of Proceeds

Active Infrastructures aims to utilize the net proceeds from the IPO for several critical business needs:

1. Working Capital: ₹3,898.04 lakhs will be allocated to fund the working capital requirements of the company.

2. Repayment of Borrowings: ₹1,672.34 lakhs will be used to repay certain borrowings and serve as margin money for bank guarantees.

3. Capital Expenditure: ₹704.80 lakhs will be dedicated to the purchase of construction equipment to support future projects.

4. General Corporate Purposes: The remaining funds will be used for corporate purposes and to cover the issue expenses.

Industry Analysis and Growth Prospects

The Indian construction sector, a significant contributor to the nation's GDP, is experiencing robust growth, driven by investments in infrastructure development, especially in roads, bridges, and urban development. Active Infrastructures is strategically positioned to benefit from this growing demand. The government’s focus on infrastructure through initiatives like the Gati Shakti National Master Plan and significant investments in the National Infrastructure Pipeline (NIP) further strengthens the outlook for companies in this space.

The market size for the Indian construction industry is projected to reach USD 1.4 trillion by 2025, with strong growth across residential, commercial, and infrastructure projects. Active Infrastructures, with its expertise in both infrastructure and commercial construction, is well-positioned to capitalize on this expansion, especially with increasing government and private sector investments.

Risk Factors and Concerns

While the company has shown steady growth, several risks could impact its future performance:

• Geographical Concentration: The company’s revenue depends heavily on Maharashtra, Uttar Pradesh, and Madhya Pradesh, which could expose it to regional economic or competitive risks.

• Construction Defects: Issues in project completion, such as defects or rework, could lead to increased costs and delays, negatively affecting profitability.

• Cost Overruns: Fluctuations in material, labor, and fuel prices could lead to cost overruns, affecting project margins.

• Dependency on Third-Party Suppliers: Active Infrastructures relies on third-party suppliers for materials like cement, steel, and bricks. Any disruptions in supply or price hikes could impact project timelines and costs.

Conclusion

Active Infrastructures Ltd’s muted debut on the NSE SME platform highlights the company's solid presence in the infrastructure and commercial construction sectors, with strong prospects for growth. Investors will be closely watching the company's performance in the coming quarters, especially as it navigates its post-IPO expansion phase and capitalizes on the growing infrastructure development market in India.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited,Identixweb Limited.

The Closed IPOs are  ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited

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