Active Infrastructures, a notable construction and infrastructure development company based in Nagpur, India, recently kicked off the process for its initial public offering (IPO), which ran from March 21 to March 25, 2025. With a total issue size of ₹77.83 crores, the offering has drawn a level of interest among investors, resulting in a 1.05 times subscription rate by the concluding day of bidding.
The IPO features a price band set between ₹178 and ₹181 per share, with investors required to apply for a minimum lot size of 600 shares, which translates to a base investment of ₹1,06,800. As of today, March 26, 2025, the company plans to finalize the allotment of shares. Investors can check their allotment status on the National Stock Exchange (NSE) and Bigshare Services, the appointed registrar for the IPO.
According to the plan, successful applicants will see their shares credited to their demat accounts tomorrow, March 27, while refund processes for those who do not receive shares will also commence on the same day. The shares are slated for a tentative listing on the NSE's SME platform on March 28, 2025. This projected listing has excited many in the market, particularly as the grey market premium (GMP) indicates a positive trend; currently, unlisted shares of Active Infrastructures are trading at approximately ₹182, reflecting a ₹1 premium over the upper end of the issue price.
Active Infrastructures, established in 2007, operates primarily in the segments of infrastructure development and commercial construction. Their work spans several substantial projects, including roads, bridges, irrigation systems, and various commercial buildings such as office complexes and educational institutions. The company has established a pan-India presence with projects extending across states like Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura.
The funds raised through this IPO are set to be allocated towards working capital requirements, the repayment of existing borrowings, procurement of construction equipment, and other general corporate purposes. This strategic use of funds illustrates the company’s intention to consolidate its capabilities and pursue further growth.
The strong participation in the IPO, despite a modest oversubscription of 1.05 times, highlights investors' cautious optimism. It's essential, however, for those interested in the market to remember that investing in small and medium enterprise (SME) IPOs entails a higher degree of risk, making it advisable to conduct due diligence or consult with financial advisors before making investment decisions.
As the IPO progresses, many are keen to see how Active Infrastructures navigates this pivotal moment in its history. The expected listing on NSE could be a significant step forward for the company, marking its evolution from a private entity into the public domain, potentially unlocking new avenues for growth and expansion.
