Active Infrastructures Limited, a leading civil construction company, is launching its Initial Public Offering (IPO) to raise ₹77.83 crores through the issue of 43 lakh fresh shares. The subscription period will open on March 21, 2025, and close on March 25, 2025. The IPO price band is set at ₹178 to ₹181 per equity share, with the shares being listed on the NSE SME on March 28, 2025.

Company Overview and Services

Active Infrastructures Limited is dedicated to building infrastructures that shape the future of communities and industries. With a focus on innovation, sustainability, and excellence, the company has earned a strong reputation in the civil construction sector. Their wide range of services includes residential, commercial, and industrial infrastructure projects, with a commitment to quality and customer satisfaction.

IPO Details and Subscription Period

The Active Infrastructures IPO is open for subscription from March 21, 2025, to March 25, 2025. The lot size is 600 shares, with the minimum investment for retail investors at ₹1,08,600 and for HNI investors at ₹2,17,200 for 2 lots. The market capitalization at the upper price band of ₹181 per share will be ₹271.77 crores.

• IPO Price Band: ₹178 - ₹181 per equity share
• Retail Investor Minimum Investment: ₹1,08,600 (600 shares)
• HNI Minimum Investment: ₹2,17,200 (1,200 shares)
• Market Capitalization at IPO Price: ₹271.77 crores

Financial Performance Overview

The company has shown consistent financial growth over recent years:

• Revenue from Operations: ₹3,389.85 Lakh (as of Sep 30, 2024), ₹9,743.06 Lakh (FY 2024), ₹8,958.72 Lakh (FY 2023), and ₹110.54 Lakh (FY 2022)
• EBITDA: ₹816.56 Lakh (as of Sep 30, 2024), ₹1,757.81 Lakh (FY 2024), ₹1,325.22 Lakh (FY 2023), and ₹11.20 Lakh (FY 2022)
• Profit after Tax (PAT): ₹555.19 Lakh (as of Sep 30, 2024), ₹1,044.67 Lakh (FY 2024), ₹986.99 Lakh (FY 2023), and ₹8.75 Lakh (FY 2022)

Key Financial Ratios and Valuation

The company's key performance metrics include:

• Pre-Issue EPS (FY24): ₹8.48
• Post-Issue EPS (FY24): ₹6.96
• Pre-Issue P/E Ratio: 21.34x
• Post-Issue P/E Ratio: 26.02x
• ROCE (FY24): 14.90%
• ROE (FY24): 36.22%
• RoNW: 36.22%
• Annualized EPS (FY24): ₹8.7
• PE Ratio: 20.80x

The P/E ratio of the company is higher than the industry average of 18x, suggesting that the IPO is fully priced.

Objectives of the IPO and Fund Utilization

The net proceeds from the Active Infrastructures IPO will be utilized for:

1. ₹3,898.04 lakh for funding working capital requirements.
2. ₹1,672.34 lakh for repayment/prepayment of borrowings and margin money for obtaining bank guarantees.
3. ₹704.80 lakh for capital expenditure towards the purchase of construction equipment.
4. General corporate purposes.
5. To meet the issue expenses.

Promoters and Leadership

The promoters of Active Infrastructures Limited include:

• Mr. Sunil Gyanchand Raisoni
• Mr. Shreyas Sunil Raisoni
• Riaan Diagnostic Private Limited
• Shradha Infraprojects Limited

With years of experience, Mr. Sunil Raisoni has been at the helm of the Raisoni Group of Institutions and has overseen numerous successful construction projects through his company, Shradha Infraprojects Limited.

Grey Market Premium (GMP) and Expected Listing Gains

Currently, the Grey Market Premium (GMP) for the Active Infrastructures IPO is ₹0, indicating that the IPO may not generate immediate listing gains. Since the GMP is based on unregulated market demand and supply, it is not a reliable predictor of the actual listing price.

Day-wise GMP Trend:

• 18 March 2025: GMP ₹0 (0% expected listing gain)

How to Check IPO Allotment Status

Investors can check the allotment status on March 26, 2025 by following these steps:

1. Visit the IPO allotment status page on the registrar's website.
2. Select Active Infrastructures Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view your allotment status.

IPO Review and Recommendation

Active Infrastructures Limited IPO offers a fairly priced investment opportunity in the construction sector. The company has a strong track record in civil infrastructure and has demonstrated consistent growth in recent years. However, with a P/E ratio higher than the industry average, the IPO is priced at a premium level.

Recommendation:
We recommend Avoid for investors looking for listing gains, as the GMP is low, and the valuation seems fully priced relative to industry peers. Investors should carefully assess the company’s growth prospects and risk factors before making a decision.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

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