The latest IPO in India is by Active Infrastructure Ltd, a company making its public debut to raise capital for its expansion and operational needs. This article delves into the IPO details, providing potential investors with essential information to make informed decisions.

​Company Overview

Active Infrastructure Ltd, established in 2007, operates primarily in two key segments:​

• Infrastructure Development: The company focuses on constructing roads, bridges, flyovers, water supply systems, irrigation projects, and related infrastructure activities.​

• Commercial Construction: They build various spaces such as office complexes, retail centers, exhibition halls, retail outlets, private educational institutions, and other facilities.​

The company operates on a pan-India scale, with completed, ongoing, and upcoming projects in Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura. They strive for customer satisfaction in all projects without compromising on quality and safety.

IPO Timeline

• IPO Opening Date: March 21, 2025​

• IPO Closing Date: March 25, 2025​

• Basis of Allotment: March 26, 2025​

• Initiation of Refunds: March 27, 2025​

• Credit of Shares to Demat: March 27, 2025​

• Listing Date: March 28, 2025​

Price Band

The price band for the Active Infrastructure Ltd IPO is set between ₹178 to ₹181 per equity share of face value ₹5 each. ​

Lot Size

The minimum lot size for the application is 600 shares, translating to a minimum investment of ₹1,08,600 at the higher price band of ₹181 per share.

Financials

For the fiscal year ending March 31, 2024, Active Infrastructure Ltd reported:​

• Total Revenue: ₹97.43 crore​

• Profit After Tax (PAT): ₹10.45 crore​

• Net Worth: ₹28.84 crore​

For the six months ending September 30, 2024, the company reported:

• Total Revenue: ₹33.90 crore​

• Profit After Tax (PAT): ₹5.56 crore​

Strengths

• Established Track Record: The company has a proven history in infrastructure and commercial project construction.​

• High-Quality Standards: They adhere to strict quality standards in material selection and structural design.​

• Experienced Management: Led by experienced promoters and a competent management team.​

• Diverse Project Portfolio: Projects span multiple states and sectors, reducing dependency on a single market.​

Risks

• Geographical Concentration: A significant portion of revenue is derived from Maharashtra, Uttar Pradesh, and Madhya Pradesh. Any adverse developments in these regions could impact operations.

• Dependence on Government Projects: The company’s business significantly depends on projects awarded by government or government-owned customers, which subjects it to a variety of risks.​

• Financial Leverage: The company relies on bank financing for working capital. Inability to secure favorable terms or defaults could hinder operations.

IPO Anchor Investors Details

As of now, specific details about anchor investors have not been publicly disclosed.​

IPO Promoter Holding Details

​Note: Specific percentages for individual promoters post-issue are not disclosed; the combined post-issue promoter holding is 71.36%.

IPO Grey Market Premium (GMP)

As of March 19, 2025, the Grey Market Premium for Active Infrastructure Ltd IPO is ₹0, indicating that shares are trading at par with the issue price in the grey market. ​

Final Thoughts

Active Infrastructure Ltd presents a compelling opportunity for investors interested in the infrastructure and construction sectors. The company’s established track record, diverse project portfolio, and experienced management are notable strengths. However, potential investors should consider risks related to geographical concentration, dependence on government projects, and financial leverage. As always, it is advisable to consult with a financial advisor before making investment decisions.