AVP Infracon is coming up with an IPO worth INR 52.34 crores, consisting of a fresh issue of 69.79 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement and to purchase capital equipment.
AVP Infracon IPO – Important Details
| AVP Infracon IPO Date | March 13, 2024 to March 15, 2024 |
| AVP Infracon IPO Listing Date | March 20, 2024 |
| AVP Infracon IPO Price | INR 71 to 75 per share |
| AVP Infracon IPO Lot Size | 1600 Shares |
| AVP Infracon IPO Total Issue Size | INR 52.34 crores |
| AVP Infracon IPO Basis of Allotment | March 18, 2024 |
| AVP Infracon IPO Initiation of Refunds | March 19, 2024 |
| AVP Infracon IPO Credit of Shares to Demat | March 19, 2024 |
| AVP Infracon IPO Issue Type | Book Built Issue IPO |
| AVP Infracon IPO Listing At | NSE SME |
AVP Infracon Ltd IPO – Company Profile
The company is engaged in the business of construction and transacts the business to construct, build, alter, acquire, convert, improve, design, erect, establish, equip, develop, dismantle, pull down, level, decorate, fabricate, reconstruct, renovate, remodel, rebuild all types of infrastructure developmental works, construction works such as technically complex and
high-value projects like Expressways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development – Civic amenities, Hospitals, warehouses, hotels, and other Commercial and Residential Projects.
The company bids for the construction of Roads, Bridges, Irrigation and Canal Projects, Flyovers, and Industrial Areas, majorly based in the state of Tamil Nadu. We have in-house capabilities to deliver a project from conceptualization to completion with a fast turnaround time from acquisition to launch to completion, which focuses on de-risking and improving return on investment.
AVP Infracon Ltd IPO – Fundamental Analysis
AVP Infracon’s IPO financials show robust growth but recent declines in revenue and EPS raise caution. With increasing assets and equity but high leverage, it offers mixed investment signals, necessitating a careful evaluation of its potential risks.
Revenue Trends:
The company showed strong revenue of ₹11,498.08 lakhs as of March 31, 2023, but experienced a decrease to ₹7,405.33 lakhs by October 30, 2023. This drop may raise concerns about sustainability and market conditions affecting revenue streams.
Equity Growth:
Equity increased from ₹2,549.66 lakhs to ₹3,405.31 lakhs, indicating investor confidence and capital infusion, possibly to support expansion or operational improvements.
Profitability:
Profit after tax remains robust, though it decreased in the latest period. A high RoNW of 46.18% decreasing to 25.05% reflects strong returns on equity, but the decline signals a potential challenge in maintaining profitability levels.
Earnings Per Share (EPS):
The decrease in diluted EPS from ₹6.70 to ₹4.75 may concern investors looking for consistent earnings growth.
Asset and Liability Management:
Total assets increased, showing continued investment in the business. However, total liabilities also rose, impacting the debt-equity ratio, which improved slightly but still indicates high leverage.
Liquidity and Inventory Management:
The current ratio shows a stable liquidity position, which is positive. The significant drop in the inventory turnover ratio suggests potential inefficiencies in managing inventory or sales slowdowns.
AVP Infracon IPO Financial Information
| Particular | As of 31 March 2023 | As of 30 October 2023 |
| Revenue (₹ in lakhs) | 11,498.08 | 7,405.33 |
| Equity (₹ in lakhs) | 2,549.66 | 3,405.31 |
| Expenses (₹ in lakhs) | 9,211.58 | 5,670.35 |
| Profit and Loss After Tax (₹ in lakhs) | 1,205.31 | 855.78 |
| RoNW (%) | 46.18% | 25.05% |
| Diluted EPS only (₹) | 6.70 | 4.75 |
| NAV per Equity Share (₹) | 13.87 | 18.50 |
| Total Assets (in lakhs) | 14,670.84 | 17,232.87 |
| Total Liabilities (in lakhs) | 11,774.62 | 13,598.40 |
| Debt Equity Ratio (in times) | 2.20 | 1.96 |
| Current Ratio (in times) | 1.38 | 1.40 |
| Inventory Turnover Ratio (in times) | 2.5 | 1.02 |
AVP Infracon Ltd IPO Peer Comparison
AVP Infracon Limited, with consolidated revenue of ₹10,633.56 lakhs and a RoNW of 46.18%, outperforms peers in profitability. Despite lower EPS compared to H.G.Infra, its RoNW highlights superior efficiency, positioned uniquely among competitors with varied revenue scales and financial metrics.
| Company | Standalone /Consolidated | Total Revenue (₹ in lakhs) | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| AVP Infracon Limited | Consolidated | 10,633.56 | 6.40 | 46.18% | 13.87 |
| Udayshivakumar Infra Limited | Standalone | 28,689.81 | 4.37 | 11.11% | 26.05 |
| Rachana Infrastructure Limited | Standalone | 6,351.67 | 1.22 | 2.51% | 48.50 |
| H.G.Infra Engineering Limited | Consolidated | 4,62,200.80 | 75.68 | 25.66% | 94.90 |
AVP Infracon Limited IPO Objective
The main objective of the AVP Infracon Limited is to invest INR 15 crores in purchasing capital equipment like road laying, loading, batching plant, and material handling equipment. Additionally, INR 35 crores will be allocated for working capital needs.
- To purchase capital equipment: On an ongoing basis, the company invests in the procurement of capital equipment, which is utilized by us in carrying out the EPC business, based on the order book and the future requirements estimated by the management. The company proposes to utilize INR 15 crores out of the net proceeds towards such purchasing capital equipment which includes
(i) Road laying equipment,
(ii) loading equipment,
(iii) batching plant equipment, and
(iv) material handling equipment.
- To fund the working capital requirements: The business of the company is working capital intensive and for this purpose, the company plans to utilise INR 35 crores from the raised funds.
AVP Infracon IPO Risks And Challenges
AVP Infracon faces risks as its revenue is solely derived from Tamil Nadu, vulnerable to regional issues. Insufficient working capital and ongoing negative cash flows may adversely affect financial performance.
- The entire revenue stream is derived from activities within the state of Tamil Nadu. Any unfavorable developments that may impact the operations in this region could have negative consequences on the business, financial health, and operational results.
- The business demands substantial working capital, and any delays in securing the necessary funds could negatively affect the financial performance.
- The company has reported negative cash flows from its operating, investing, and financing activities. Any operating losses or negative cash flows in the future could adversely affect the business.
AVP Infracon Ltd IPO – Industry & Market Potential
The forecast for the roads and highways market in India indicates a remarkable Compound Annual Growth Rate (CAGR) of 36.16% from 2016 to 2025. This projection is attributed to the government’s increasing initiatives to enhance the transportation infrastructure across the country.
Innovations and exceptional performance characterize India’s highways sector. The government has successfully introduced over 60 road projects, surpassing a value of $10 billion, employing the Hybrid Annuity Model (HAM). The HAM approach has effectively balanced risk distribution between private and public partners, fostering increased Public-Private Partnership (PPP) engagement in the sector
.
The National Highways Authority of India (NHAI) has adopted asset recycling through the toll-operate transfer (ToT) model for 100 highways. Notably, the first two bundles, each comprising nine highways, were successfully monetized, attracting investments exceeding $2 billion
AVP Infracon Ltd IPO – Type of Offer
AVP Infracon Limited is set to launch an IPO valued at INR 52.34 crores, featuring a fresh issue of 69.79 lakh shares. The proceeds will be used to address working capital needs and acquire capital equipment.
AVP Infracon Ltd IPO Offer Size
The offer size of AVP Infracon Limited’s IPO is INR 52.34 crores. The net proceeds will be used to meet working capital needs and to purchase new equipment.
AVP Infracon IPO Allotment Structure
AVP Infracon’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for Market Makers.
● Qualified Institutional Buyers (QIB):As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation Portion: A portion of the issue up to 7,31,200 shares is reserved formarket makers.
How to apply for a AVP Infracon Limited IPO?
To apply for the AVP Infracon IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
1. Check for IPO Details: Once your account is active, you can check for the AVP Infracon IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.
You can apply for the AVP Infracon IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check AVP Infracon’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the AVP Infracon IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the AVP Infracon IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the AVP Infracon IPO:
● Registrar’s Website: Visit the website of Purva Sharegistry India Private Limited the registrar of the AVP Infracon IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
AVP Infracon Limited IPO Offer Registrar
The registrar for the AVP Infracon Limited IPO is Purva Sharegistry India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Purva Sharegistry India Private Limited
9, Shiv Shakti Industrial Estate,
J. R. Boricha Marg, Lower Parel (E), Mumbai – 400011
Email Id: [email protected]
Website: www.purvashare.com
AVP Infracon Limited IPO – FAQs
The allotment date of the AVP Infracon Limited IPO is March 18, 2024.
The price band of the issue is INR 71-75 per share.
AVP Infracon is coming up with an IPO worth INR 52.34 crores, consisting of a fresh issue of 69.79 lakh shares. The company plans to utilize the funds raised to meet the working capital requirement and to purchase capital equipment.
The listing date of AVP Infracon’s IPO is Mach 20, 2024.
