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11 March 2024

AVP Infracon IPO: Unlocking New Avenues for Growth

AVP Infracon, known for its extensive work in the field of infrastructure construction, is all set to make a significant move in the financial market with its latest IPO. This initial public offering marks a pivotal step for the company as it seeks to expand its capabilities and reach new heights in the construction sector.

IPO Details at a Glance

IPO Opening Date: March 13, 2024
IPO Closing Date: March 15, 2024
Allotment Date: Expected on March 18, 2024
Listing Date: Tentatively set for March 20, 2024, on NSE SME
Price Band: ₹71 to ₹75 per share
Lot Size: 1600 Shares
Minimum Investment: ₹120,000 for retail investors
Issue Size: Fresh issue of 6,979,200 shares, aggregating up to ₹52.34 Cr

Key Players

Book Running Lead Manager: Share India Capital Services Private Limited
Registrar: Purva Sharegistry India Pvt Ltd
Market Maker: Share India Securities

Share Allocation Breakdown

Investor Category	Shares Offered	Percentage
Anchor Investors	1,870,400	26.80%
Market Maker	731,200	10.48%
QIB	1,248,000	17.88%
NII (HNI)	939,200	13.46%
Retail	2,190,400	31.38%
Total	6,979,200	100%

IPO Highlights

Anchor Investment: On March 12, 2024, AVP Infracon successfully raised ₹14.03 crore from anchor investors, underlining strong market confidence.
Company Profile: Established in 2009, AVP Infracon Limited specializes in road projects, including expressways, national highways, and urban development projects. Operating primarily in Tamil Nadu, the company has completed over 40 projects worth approximately ₹31,321.03 lakhs.

Financial Snapshot

Assets: As of October 31, 2023, total assets stood at ₹17,232.87 lakhs.
Revenue: The company reported revenue of ₹7,411.90 lakhs for the period ending October 31, 2023.
Profit After Tax (PAT): The PAT for the same period was ₹855.78 lakhs.

Market Performance Indicators

ROE: 25.05%
ROCE: 22.63%
Debt/Equity Ratio: 1.96
PAT Margin: 11.91%

Objective of the Issue

The proceeds from the IPO will be utilized for purchasing capital equipment, meeting working capital requirements, general corporate purposes, and covering the public issue expenses.

IPO Subscription Status

The IPO has witnessed an overwhelming response, with a total subscription rate of 21.45 times as of the closing date on March 15, 2024. The retail category, in particular, showed strong interest, subscribing 22.49 times.

In Conclusion

The AVP Infracon IPO presents a promising opportunity for investors looking to partake in the company's growth trajectory. With a solid foundation in the infrastructure sector and a strong financial performance, AVP Infracon is poised for future expansion. Potential investors are encouraged to consider this IPO, keeping in mind the company's potential for growth and the overall market dynamics.

FAQs: AVP Infracon IPO

What is an IPO?

An Initial Public Offering (IPO) is the first sale of shares by a previously private company to the public, marking its entry into the public market.
What does AVP Infracon specialize in?

AVP Infracon is engaged in construction projects, focusing on road projects including expressways, national highways, bridges, and other infrastructure projects, primarily operating under the Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) model.
When is the AVP Infracon IPO scheduled?

The IPO is open for subscription from March 13, 2024, to March 15, 2024.
What is the price band for the AVP Infracon IPO?

The price band for the IPO is ₹71 to ₹75 per share.
How many shares are being offered in the IPO?

The IPO comprises a fresh issue of 69.79 lakh shares, aiming to raise ₹52.34 crores.
What is the lot size for the IPO?

The minimum lot size for the IPO is 1600 shares.
How much is the minimum investment for retail investors?

The minimum investment required by retail investors is ₹120,000.
Who are the book running lead manager and registrar for the IPO?

Share India Capital Services Private Limited is the book running lead manager, and Purva Sharegistry India Pvt Ltd is the registrar for the issue.
What is the purpose of the IPO?

The proceeds from the IPO will be utilized towards purchasing capital equipment, meeting working capital requirements, general corporate purposes, and covering public issue expenses.
What is the listing date for the AVP Infracon IPO?

The IPO is expected to list on the NSE SME platform on March 20, 2024.
How can I apply for the AVP Infracon IPO?

Investors can apply for the IPO through their trading account or bank that offers IPO application services, using the ASBA (Application Supported by Blocked Amount) facility.
What is the expected market capitalization of AVP Infracon post-IPO?

The expected market capitalization post-IPO would be based on the final issue price and the total number of shares outstanding after the IPO. The precise figure will be clear post-listing.