The Active Infrastructures IPO offers a significant opportunity for investors to tap into the civil construction sector. The company, known for its commitment to excellence, innovation, and sustainability in delivering top-quality infrastructure solutions, is offering 43.00 Lakh shares in a Fresh Issue valued at ₹77.83 Crores. The subscription period for the IPO opened on March 21, 2025, and will close on March 25, 2025. The allotment date is expected on March 26, 2025, with shares to list on the NSE SME on March 28, 2025.

The price band for the IPO is set between ₹178 to ₹181 per equity share, with a market capitalization of ₹271.77 Crores at the upper price band. Retail investors can apply for a minimum of 600 shares (₹1,08,600), while High-Net-Worth Individuals (HNIs) must apply for a minimum of 2 lots (1,200 shares), amounting to ₹2,17,200.

The Grey Market Premium (GMP) for Active Infrastructures IPO is currently ₹0, indicating that there are no expected listing gains based on the financial performance of the company. The GMP reflects demand and supply dynamics in the unregulated grey market and does not guarantee the listing price. As of March 21, 2025, the IPO has been subscribed 0.19 times on its first day of subscription, showing a modest response.

The company has shown steady financial growth, with revenues of ₹3,389.85 Lakh for FY24 and EBITDA of ₹816.56 Lakh for the same period. The Profit After Tax (PAT) for FY24 is ₹555.19 Lakh, indicating stable profitability. The pre-issue EPS stands at ₹8.48, with a P/E ratio of 21.34x, which is higher than the industry average of 18x.

The company’s key promoters include Mr. Sunil Gyanchand Raisoni and Mr. Shreyas Sunil Raisoni, who bring extensive experience in the construction field, alongside corporate promoters such as Shradha Infraprojects Limited.

Objectives of the IPO: The net proceeds from the IPO will be used for the following purposes:

• ₹3,898.04 Lakhs for funding working capital requirements.

• ₹1,672.34 Lakhs for repayment/prepayment of borrowings and margin money for bank guarantees.

• ₹704.80 Lakhs for capital expenditure towards purchasing construction equipment.

• General corporate purposes and issue expenses.

IPO Review: Despite the company’s steady financial performance, with a ROCE of 14.90% and ROE of 36.22% for FY24, the IPO is priced at a premium relative to the industry’s P/E ratio. The Grey Market Premium (GMP) of ₹0 and the higher P/E ratio indicate that the IPO may not provide significant listing gains, leading to a recommendation for investors to avoid the Active Infrastructures Limited IPO if looking for listing gains.

In conclusion, while Active Infrastructures offers a solid business model and experienced leadership, investors seeking short-term gains from listing should exercise caution due to the pricing and lack of listing premium. However, for long-term investors interested in the civil construction sector, the IPO offers an opportunity to be a part of a company with a promising future.

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

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

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