Is Active Infrastructures Limited IPO a Smart Investment Opportunity for You?

Active Infrastructures Limited, a Nagpur-based company specializing in infrastructure development, is set to launch its Initial Public Offering (IPO) on the NSE Emerge platform.

IPO Details:

• Issue Period: March 21 to March 25, 2025

• Issue Size: ₹77.83 crore

• Price Band: ₹178 to ₹181 per share

• Lot Size: 600 shares

• Minimum Investment: ₹1,08,600 at the upper price band

• Listing Platform: NSE Emerge

Company Overview:

Established in 2000, Active Infrastructures Limited has been a key player in the construction of roads, flyovers, water supply systems, and commercial projects. The company has a significant presence in infrastructure development across various sectors, contributing to India's growth.

Financial Performance:

• Revenue:

  • FY 2023-24: ₹97.43 crore

  • H1 FY 2024-25 (ending September 30, 2024): ₹33.90 crore

• Profit After Tax (PAT):

  • FY 2023-24: ₹10.45 crore

  • H1 FY 2024-25: ₹5.56 crore

• Net Worth:

  • As of September 30, 2024: ₹32.51 crore

These figures indicate consistent growth in revenue and profitability.

Utilization of IPO Proceeds:

The funds raised will be allocated as follows:

• Working Capital Requirements: ₹38.98 crore

• Repayment/Pre-payment of Borrowings: ₹16.72 crore

• Capital Expenditure for Construction Equipment: ₹7.05 crore

• General Corporate Purposes: Remaining amount

This strategic allocation aims to strengthen the company's operational capabilities and financial position.

How to Apply:

Investors can apply through:

1. ASBA (Application Supported by Blocked Amount): Via net banking services.

2. UPI (Unified Payments Interface): Through platforms like Zerodha, Groww, or Shoonya.

3. Offline Application: By submitting physical forms at registered broker offices.

   
   

4. Apply for Active Infrastructures ltd IPO via Zerodha

   Apply for Active Infrastructures ltd IPO via Upstox

Investment Considerations:

Strengths:

• Established Track Record: Over two decades in infrastructure development.

• Diverse Project Portfolio: Involvement in various sectors, including roads, flyovers, and water systems.

• Financial Growth: Steady increase in revenue and profits.

Risks:

• Project Execution: Delays or cost overruns could impact profitability.

• Regulatory Changes: Shifts in government policies may affect operations.

• Market Competition: Facing competition from established players in the infrastructure sector.

Conclusion:

Active Infrastructures Limited's IPO offers investors an opportunity to participate in a company with a solid track record in infrastructure development. However, potential investors should carefully assess the associated risks and perform due diligence before making investment decisions.

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Consult with a certified financial advisor before making any investment decisions.

Sources of information: Hindustan Times