Active Infrastructures Limited, a prominent player in India’s civil construction sector, has opened its IPO to the public. Known for its commitment to excellence, innovation, and sustainability, Active Infrastructures delivers top-quality infrastructure solutions for building the future. With a diverse range of services in construction, it shapes communities and industries, providing foundational support for a growing India. This IPO presents an opportunity for investors to participate in its next phase of growth.

Active Infrastructures IPO Overview

The Active Infrastructures IPO is a Book Built Issue with a total offering amount of ₹ 77.83 Crores, consisting entirely of a Fresh Issue of 43.00 Lakh Shares. The subscription period for this IPO is scheduled from March 21, 2025, to March 25, 2025, with an allotment date of March 26, 2025, and a tentative listing date on March 28, 2025. The IPO’s price band is set at ₹ 178 to ₹ 181 per equity share, with a lot size of 600 shares.

Investment and Lot Size

Retail investors must invest a minimum of ₹ 1,08,600 for 600 shares, while High-Net-Worth Individuals (HNIs) are required to invest in 2 lots (1,200 shares), amounting to ₹ 2,17,200. The Market Capitalization of Active Infrastructures at the upper IPO price of ₹ 181 per share will be ₹ 271.77 Crores.

IPO GMP (Grey Market Premium)

Currently, the Grey Market Premium (GMP) for Active Infrastructures IPO is ₹ 0, reflecting no significant movement in the grey market. The price discovery through GMP is speculative and unregulated, so potential investors should exercise caution.

Subscription and Allotment Updates

As of 7:00 PM on March 25, 2025, the IPO has been subscribed 1.05 times on its final day of subscription. The allotment is scheduled for March 26, 2025, and investors can check their status by visiting the registrar’s website using their application number or PAN.

Active Infrastructures IPO Financial Performance

Active Infrastructures has shown steady growth over the years. For the fiscal year ending September 30, 2024, the company posted revenues from operations of ₹ 3,389.85 Lakhs, with an EBITDA of ₹ 816.56 Lakhs and a profit after tax (PAT) of ₹ 555.19 Lakhs. This financial performance reflects the company’s resilience and growth in the infrastructure sector.

Key Performance Indicators

The company’s pre-issue earnings per share (EPS) for FY24 stands at ₹ 8.48, and the post-issue EPS is ₹ 6.96. The pre-issue P/E ratio is 21.34x, while the post-issue P/E ratio is 26.02x, compared to the industry P/E ratio of 18x. These metrics suggest that the IPO is priced at a premium, and potential investors should carefully consider the pricing relative to the sector’s average.

The Return on Capital Employed (ROCE) for FY24 is 14.90%, while the Return on Equity (ROE) is a solid 36.22%. These figures indicate strong financial health and the company’s ability to generate value from its investments.

Objectives of the Active Infrastructures IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹ 3,898.04 Lakhs for funding the company’s working capital requirements.

2. ₹ 1,672.34 Lakhs for the repayment/prepayment of borrowings and margin money for obtaining bank guarantees.

3. ₹ 704.80 Lakhs for capital expenditure towards the purchase of construction equipment.

4. General corporate purposes and to meet the issue expenses.

Active Infrastructures IPO Review

Active Infrastructures Limited is led by experienced promoters, including Mr. Sunil Gyanchand Raisoni and Mr. Shreyas Sunil Raisoni, both with deep ties in the construction and education sectors. The company has a proven track record in completing numerous large-scale infrastructure projects, bolstering its reputation in the civil construction industry.

Despite strong financials, the IPO valuation seems on the higher side. The Grey Market Premium (GMP) reflects no expected price gain, and the P/E ratio is higher than the industry average. Given these considerations, it is recommended that investors approach this IPO with caution, as the market conditions may not favor immediate listing gains.

Conclusion

While Active Infrastructures Limited has an impressive track record and solid financials, the high P/E ratio and lack of significant GMP suggest that investors may not see substantial listing gains. As such, this IPO may appeal more to long-term investors who believe in the company's future growth and infrastructure development projects rather than those looking for short-term profits. Therefore, we recommend that investors carefully assess their investment goals before proceeding with this IPO.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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