What you must know about AVP Infracon IPO?

About AVP Infracon Limited

Since its establishment in 2009, AVP Infracon Limited has emerged as a premier infrastructure development company in India. Over the past 14 years, it has successfully executed numerous projects, including government contracts and national initiatives, solidifying its reputation as a dependable construction firm. AVP Infracon Limited, with a workforce of more than 100 skilled employees including contractors, specializes in road construction projects and Engineering, Procurement and Construction (EPC) methods.

The company's expertise spans a wide range of infrastructure development works, including construction, renovation, and civil works. AVP Infracon Limited specializes in complex and high value projects.such as Expressways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development, Municipal Facilities, Hospitals, Warehouses, Hotels, and other commercial and residential ventures. Since its inception, AVP Infracon Limited has successfully completed 40 projects, amounting to approximately 31,321.03 lakhs.

Highlights of the AVP Infracon IPO

Here are some of the highlights of the AVP Infracon IPO

•  AVP Infracon will be open from 13 March 2024 to 15 March 2024. AVP Infracon has a face value of ₹10 per share and the price band for the IPO has been set in the range of ₹71to ₹75 per share.

•  The IPO of AVP Infracon Ltd has only a fresh issue component and no offer for sale (OFS) portion.

•  As part of the fresh issue portion of the IPO, AVP Infracon will issue a total of 69.79 lakh shares, at the upper band of IPO price of ₹75 per share to raise fresh fund of ₹52.34 crores.

•  Since there is no offer for sale (OFS) portion the total IPO size is equivalent to the fresh issue size of the IPO of ₹52.34 crores.

•  The company is promoted by Mr. D Prasanna and Mr. B Venkateshwarlu.  Promoter holding in the company currently stands at 86.5%. However, post listing promoter equity holding will get diluted to 62.34%.

•  The raised funds will be used for purchasing capital equipment, meeting working capital needs, covering public issue expenses, and general corporate purposes.

•  Share India Capital Services Private Limited is the book running lead manager for AVP Infracon IPO, with Purva Sharegistry India Pvt Ltd serving as the registrar for the issue. Share India Securities has been appointed as the market maker for the IPO.

AVP Infracon IPO allocation and lot size for investment

The net offer will be distributed among retail investors, Qualified Institutional Buyers (QIBs), and High Net Worth Individuals (HNIs) / Non-Institutional Investors (NIIs). The allocation breakdown for the overall IPO of AVP Infracon Ltd is mentioned below.

Lot sizes for investing in the AVP Infracon IPO

The minimum lot size for AVP Infracon IPO investment is 1600 shares, equivalent to ₹120,000 (1,600 shares x ₹75 per share), which is also the maximum for retail investors. HNI/NII can invest in a minimum of two lots, totaling 3200 shares with a minimum value of ₹2,40,000.  Below is the breakdown of lot sizes for different categories.

Key dates for AVP Infracon IPO

The AVP Infracon IPO will open on Wednesday, 13 March 2024 and conclude on Thursday, 15 March 2024. Likewise, the bidding period for the AVP Infracon Ltd IPO will be from 13 March 2024, starting at 10:00 AM, until 15 March 2024, closing at 5:00 PM. The cut-off time for UPI Mandate confirmation is also set for 5:00 PM on the closing day of the issue, which falls on 15 March 2024.

In ASBA applications, the total application amount is blocked, meaning the funds are reserved but not deducted from the bank account. After the allotment process, only the allotted amount is debited from the blocked funds. The remaining amount is automatically released back to the bank account without any refund process.

Financial highlights of AVP Infracon Ltd

The table below captures the key financials of AVP Infracon Ltd for the last 3 completed financial years.

Profit after Tax for AVP Infracon Limited has shown growth over the past three fiscal years. In FY21, the PAT stood at ₹170.05 Lakhs indicating a promising start. This figure notably increased in FY22 to ₹276.88 Lakhs reflecting a notable improvement in profitability. The most recent fiscal year, FY23, witnessed a substantial surge in PAT reaching ₹1,205.31 Lakhs. Its growth trajectory highlights the company's ability to generate profits and its potential for further expansion and success in the infrastructure sector.

AVP Infracon Strength

1.  Experienced and Qualified Team

2.  AVP Infracon boasts a robust order book comprising projects for roads, bridges and flyovers secured by various state governments.

3.  AVP Infracon is dedicated to quality across products, processes and raw materials ensuring repeat orders by meeting customer standards. Timely delivery and dedicated resources ensure continuous quality assurance, with rigorous checks on raw materials and post manufacturing inspections maintaining our commitment to excellence.

4.  Experienced Management Team

AVP Infracon Risk

1.  Its revenue solely depends on operations in Tamil Nadu. Any adverse developments in the region could harm our business, finances and operations.

2.  It requires significant working capital and delays in securing funds could impact its financial performance.