Active Infrastructures Limited has officially opened its Initial Public Offering (IPO) for subscription today, Friday, March 21, 2025, with plans to close it by Tuesday, March 25, 2025. This new investment opportunity comes with a price band set between ₹178 and ₹181 per equity share, each with a face value of ₹5.
Investors looking to participate must place bids in a minimum quantity of 600 equity shares, with further bids to be placed in multiples of 600 shares. Founded in 2007, Active Infrastructures specializes in civil construction and has established itself over the years by engaging in various infrastructure and commercial construction projects. Their portfolio notably includes significant undertakings such as constructing roads, bridges, and water supply systems, as well as developing commercial facilities like office complexes and exhibition centers.
The company's operations span multiple states in India, including Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura. Active Infrastructures prides itself on its commitment to customer satisfaction, quality, and safety across all its projects.
According to the Red Herring Prospectus (RHP), the firm's listed peers in the sector include AVP Infracon Ltd, with a price-to-earnings (P/E) ratio of 25.70, and V.L. Infraprojects Ltd, with a P/E ratio of 6.95. This information gives potential investors a benchmark to evaluate Active Infrastructures' performance relative to its competitors in the market.
As of day one of the IPO, the subscription status reflects an initial interest level of 4%. Specifically, the retail portion attracted a 7% subscription rate, while the Non-Institutional Investors (NII) segment saw a modest 1% subscription. The Qualified Institutional Buyers (QIB) portion remains unbooked at this point in time. By 13:49 IST on the IPO's opening day, Active Infrastructures had received bids for 151,800 shares against a total offer of 3,839,400 shares, indicating a cautious but present investor engagement.
The current IPO is composed of a fresh issue of 4,300,200 equity shares, aiming to raise approximately ₹77.83 crore. Notably, there is no offer for sale (OFS) component in this IPO, which means all the raised funds will come from newly issued shares.
Funds generated from the IPO are earmarked for various crucial purposes. These include addressing the company's working capital requirements, repaying or prepaying specific loans, securing bank guarantees, investing in capital expenditures for new construction equipment, and fulfilling general corporate expenses. Kreo Capital Private Limited serves as the book-running lead manager for the IPO, ensuring the smooth execution of the offering process, while Bigshare Services Pvt Ltd functions as the registrar handling the investor applications.
As investors begin to gauge this opportunity, today’s grey market premium (GMP) for Active Infrastructures remains neutral at ₹0. This indicates that shares are trading at their issue price of ₹181, reflecting a balanced market sentiment with no perceived premium or discount in the grey market, as reported by investorgain.com. The grey market premium, a crucial marker of investor confidence, indicates the willingness of investors to pay above the issue price in anticipation of future gains.
As the IPO progresses through its subscription phase, analysts and investment advisors encourage potential participants to exercise due diligence. They’re reminded that the investment landscape can be unpredictable and suggest consulting with certified financial experts to gain insights tailored to individual investment goals.
Active Infrastructures was founded with the goal of making significant contributions to India's infrastructure development. As the country continues to push for enhanced infrastructure to support its growing economy, initiatives by firms like Active Infrastructures can play a critical role in meeting rising demands.
This IPO represents an essential moment for the company as it seeks to capitalize on investment opportunities in the ongoing infrastructure boom across various sectors in India. Interested investors are advised to monitor the subscription status closely as the deadline approaches and weigh the potential benefits against their investment strategies.
Active Infrastructures aims to create value for all stakeholders by leveraging the funds raised through its IPO to foster growth in construction projects that impact local communities while ensuring sustainable practices and transparency in operations.
