Active Infrastructures Ltd., a prominent name in the civil construction sector, launched its initial public offering (IPO) on March 21, 2025, aiming to raise nearly ₹77.83 crore. The subscription window for this public offering is set to remain open until March 25, providing both retail and institutional investors with opportunities to enter the market. Investors can acquire shares priced between ₹178 and ₹181 per share, with a minimum lot size of 600 shares.
The company has already attracted initial interest, raising ₹4.43 crore from anchor investors just before the IPO opening, indicating a positive market sentiment. In its strategic approach, Active Infrastructures has allocated 50% of the public offering for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors, highlighting its commitment to nurturing a diverse investor base.
Scheduled for a share allotment finalization on March 26, 2025, the company plans to credit successful bidders’ shares to their demat accounts by March 27. Investors can expect shares of Active Infrastructures to be listed on the NSE SME platform on March 28, marking a significant milestone for the company.
According to the company’s Red Herring Prospectus, the proceeds from the IPO will be utilized primarily for working capital needs, repayment and prepayment of existing borrowings, and acquiring construction equipment. Additionally, a portion of the funds will be allocated for general corporate purposes. "We will utilize the proceeds primarily for our working capital requirements and equipment purchases," an Active Infrastructures spokesperson noted in their filing.
Active Infrastructures operates on a pan-India scale, focusing on both infrastructure projects and commercial construction. Its portfolio includes constructing roads, bridges, and various commercial spaces such as office complexes and retail centers. The company operates in key states including Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura, with multiple projects that are ongoing and planned for the future.
The financial outlook for Active Infrastructures presents a mixed picture. The company reported an 8.7% increase in revenue, rising from ₹89.4 crore in FY23 to ₹97.2 crore in FY24. However, profits took a hit, dropping by 7% to ₹9.08 crore from the previous fiscal year’s ₹9.77 crore. The company's total expenses also increased by 9.1%, indicating rising operational costs that need addressing.
For the initial half of FY25, Active Infrastructures has reported revenues of ₹33.67 crore with a profit of ₹5.55 crore, suggesting a recovery phase that could reassure potential investors as the IPO unfolds. While the grey market premium (GMP) for the IPO was reported as nil on the opening day, this reflects a flat expectation in the unlisted market—a factor investors often consider when determining the attractiveness of an IPO.
The construction market in India continues to evolve, and Active Infrastructures is poised to play a pivotal role moving forward. As interest in infrastructure development grows, bolstered by government initiatives, the company’s strategic positioning could yield lasting benefits post-IPO.
As this IPO progresses through its subscription period, potential investors are encouraged to assess their options carefully. With significant stakes in various sectors of the infrastructure domain, Active Infrastructures presents both opportunities and challenges that will shape its future trajectory. Market watchers will keenly await the outcomes of the upcoming allotment, eagerly anticipating the potential for growth from this newly listed entity.
