Active Infrastructures Ltd. (AIL), a pan-India construction and infrastructure company, has announced its maiden IPO, set to open for subscription from March 21 to March 25, 2025. The company aims to raise Rs. 77.83 crore through the book-building route, offering 43,00,200 equity shares at a price band of INR 178-181 per share. Post-listing, the shares will be traded on the NSE SME Emerge platform.
Company Overview and Business Model
AIL operates across two core segments: infrastructure development and commercial project construction. The company has a diverse portfolio, undertaking projects related to roadways, flyovers, water supply systems, and irrigation, alongside building commercial spaces like office complexes, retail centers, and educational institutions. With operations spanning Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura, AIL emphasizes quality, safety, and sustainability in all its projects.
As of the IPO filing date, AIL employs 53 staff members, supported by 150-160 contractual workers at various project sites. The company is equipped with robust resources, machinery, and engineering capabilities, positioning itself strategically to meet market demands.
IPO Details and Utilization of Funds
The IPO constitutes 28.64% of AIL’s post-issue paid-up capital, bringing the company’s total equity base to INR 7.51 crore. The funds raised will be allocated as follows:
- INR 38.98 crore for working capital requirements
- INR 16.72 crore for repayment of certain borrowings
- INR 7.05 crore for acquiring construction equipment
- The remaining for general corporate purposes
Financial Performance and Valuation
AIL has witnessed significant growth in recent years. Key financial highlights include:
- FY22: Revenue of INR 1.11 crore, net profit of INR 0.09 crore
- FY23: Revenue of INR 89.59 crore, net profit of INR 9.87 crore
- FY24: Revenue of INR 97.43 crore, net profit of INR 10.45 crore
- H1 FY25: Revenue of INR 33.90 crore, net profit of INR 5.55 crore
The company has maintained healthy profit margins, with an average EPS of INR 5.89 and an RoNW of 36.07%. However, its P/E ratio of 24.46 (FY25 estimates) and 26.01 (FY24 earnings) suggests an aggressive valuation compared to listed peers like AVP Infra and VL Infraprojects, which trade at P/E ratios of 16.2 and 10.8, respectively.
Growth Prospects and Investment Outlook
AIL boasts an order book exceeding INR 345 crore, with tenders worth INR 700-800 crore in the pipeline. The company has also adopted a structured dividend policy, having paid dividends in recent years. While the firm has demonstrated strong profitability, its recent financial performance suggests a plateau in revenue growth.
Given its ambitious expansion plans and existing project pipeline, AIL presents a long-term investment opportunity. However, investors should weigh the aggressive pricing and longer gestation period for returns before making investment decisions.
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