The Active Infrastructures Limited IPO has generated significant interest among investors as it offers a fresh issue of 43.00 lakh shares. With a total issue size of ₹77.83 Crores, the subscription period for the IPO began on March 21, 2025, and closed on March 25, 2025. The allotment date is expected on March 26, 2025, and the shares will be listed on the NSE SME on March 28, 2025, at a price band of ₹178 to ₹181 per share.

Financial Performance and Key Metrics

Active Infrastructures has shown strong growth in its financial performance, with a steady increase in revenue, EBITDA, and profit over the years. For the period ending September 30, 2024, the company reported a revenue from operations of ₹3,389.85 Lakh, an EBITDA of ₹816.56 Lakh, and a profit after tax (PAT) of ₹555.19 Lakh. These figures indicate robust financial health and a promising future for the company.

The pre-issue EPS stands at ₹8.48, while the post-issue EPS is ₹6.96 for FY24. The P/E ratio of the company is 21.34x pre-issue and 26.02x post-issue, compared to the industry average of 18x. The company's ROCE for FY24 is 14.90%, and ROE is 36.22%, reflecting a healthy return on capital employed and equity. These performance metrics suggest that the IPO is fully priced, with the valuation appearing in line with the company's current financial standing.

Subscription Status and IPO Overview

As of March 25, 2025, the Active Infrastructures IPO was subscribed 1.05 times on the final day of its subscription period. The IPO’s market capitalization at the upper price band of ₹181 per share is estimated at ₹271.77 Crores. Retail investors are required to invest a minimum of ₹1,08,600 for 600 shares, while HNIs are required to invest ₹2,17,200 for 1,200 shares.

The Grey Market Premium (GMP) for the IPO is ₹0, indicating no significant premium ahead of the listing. This suggests a balanced market sentiment regarding the IPO. While no real trading is happening in the grey market, the listing gains are expected to be minimal due to the steady financial performance and IPO valuation. Investors should be cautious and evaluate the financial health of the company before making investment decisions.

Objectives of the IPO

The company plans to utilize the net proceeds from the IPO for various corporate objectives, including:

1. Funding Working Capital Requirements: ₹3,898.04 Lakhs will be used to support the company's working capital needs.

2. Repayment of Borrowings: ₹1,672.34 Lakhs will go towards repaying/prepaying certain borrowings and margin money for bank guarantees.

3. Capital Expenditure: ₹704.80 Lakhs will be allocated for purchasing construction equipment.

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

Market Insights and Analyst Recommendations

The financial metrics indicate that Active Infrastructures is a well-positioned company in the civil construction industry. However, the current Grey Market Premium and P/E ratios suggest that the IPO is fully priced. Investors looking for listing gains may need to proceed with caution, given the current market trends and valuation benchmarks.

Active Infrastructures is backed by a team of experienced promoters, including Mr. Sunil Gyanchand Raisoni, Mr. Shreyas Sunil Raisoni, and corporate entities like Shradha Infraprojects Limited. Their extensive experience in the construction sector adds credibility to the company’s long-term prospects.

Conclusion

Active Infrastructures Limited IPO presents an opportunity for investors to participate in the growing civil construction sector. While the IPO is priced at a reasonable valuation, potential investors should weigh the IPO’s financial performance, GMP, and market conditions before making a decision. Given the current market sentiment, the IPO seems suitable for investors with a long-term investment horizon rather than those seeking immediate listing gains. Investors are advised to stay updated with the allotment status and listing date to track their investments effectively.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Identixweb Limited, Retaggio Industries Limited, Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited, Rapid Fleet Management Services, Active Infrastructures Limited.

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