Afcom Holdings Ltd IPO: Review, Valuation, Opening Date & GMP

Afcom Holdings Limited IPO - Complete Overview

Afcom Holdings Limited IPO an SME IPO is a book-built issue of Rs.73.83 crore by Afcom Holdings Limited that was founded in February 2013 and specializes in cargo transportation from airport to airport. General Sales and Service Agents (GSSAs) for the corporation are located in China, Taiwan, South Korea, Japan, Hong Kong, Singapore, and Thailand.

The logistics sector in India is amongst the biggest globally. It is likely to grow to US$365 billion by the end of Fiscal 2026 at a 9 percent CAGR. On this basis, the Indian retail sector is likely to grow to US$1.8 trillion by 2030.

With a concentration on Singapore, the airline offers cargo flights to the ASEAN (Association of Southeast Asian Nations) nations, which include Brunei, Indonesia, and Singapore. Furthermore, the company reached an agreement with Taylor Logistics Private Limited, a division of the GSSA in India that will be the TTK Group. The company employed 47 people as of February 29, 2024.

The company plans to launch its SME IPO on August 2, 2024. 

 

Afcom Holdings Limited IPO Overview

The Rs.73.83 crore Afcom IPO consists of a fully fresh issue of 68.36 lac shares, of which 35% are allotted to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

This SME IPO is available for purchase from August 2 - August 6, 2024. The expected listing date on Friday, August 9, 2024, on BSE and SME. Share price between Rs.102 to Rs.108.

To open a Demat Account and apply for the IPO, Click Here.

 

Company Financial

The company's profit after tax (PAT) climbed by 17.28% over the fiscal years ending 29 Feb 2024, and FY 2022-2023, while revenue increased by 58.89%.

Below is the synopsis of the company's financial data for the period between Feb 29, 2024, and FY 2022-2023.

• The total revenue of the company is Rs.13,416.38 lac.

• The net worth of the company is Rs.10,087.71 lac.

• The company's EBITDA is Rs.3299.55 lac.

• The total assets of the company are Rs.12,929.75 lac.
  
  

(Amount in Lac)

Period	29 Feb 2024	31 Mar 2023	31 Mar 2022
Total Assets	12,929.75	8,285.40	2,514.51
Total Revenue	13,416.38	8,490.12	4,866.97
PAT	2,310.37	1,358.62	514.80
Net Worth	10,087.71	7,330.56	2,181.65
Reserve & Surplus	8,285.58	5,570.19	1,931.78
Borrowing	1,547.50	47.60	3.83

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in Lac)

Net Cash Flow In Multiple Activities	29 Feb 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	2179.13	-1894.22	-374.42
Net Cash Flow Investing Activities	-18.54	-1227.47	-4.30
Net Cash Flow Financing Activities	1788.46	3739.47	421.32

 

Revenue From Operations Breakdown For The Last Three Fiscals

(Amount in Lac)

Particular	29 Feb 2024	FY 2023	FY 2022
From Export	12295.14	8201.00	3993.32
From Domestic	1074.83	213.42	834.08
Total	13369.97	8414.42	4827.4

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital requirements.

• Funding Capital Expenditure for leasing two new aircraft.

• Full or Partial Repayment of certain outstanding debts obtained by the company.

• To cover the Issue Costs.

• Corporate Purposes.

 

Peers of Afcom Holdings Limited

No listed peer engaged in a similar business as mentioned in the RHP of the company.

 

Evaluation

The price of this IPO is Rs.102 to Rs.108 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2023, with EPS of Rs.7.94 from the last year, the resulting P/E ratio is 13.60x.

Considering the weighted EPS of Rs.4.83 for the last three years, the P/E ratio is 22.36x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available.

IPO's Strengths

• Suitably outfitted to manage risky cargo.

• High hurdles to entry into the industry.

• As per the DGCA training rules, all of its aircrew members complete the necessary training courses. Its internal training programs provide frequent training for both operational and administrative workers.

 

IPO’s Weaknesses

• The company historically had negative cash flow, and it may do so in the future. This might have a significant negative impact on its operations.

• Overcapacity.

• Seen as lacking in competitive pricing.

• Poor economics for the majority of carriers.

• Improper justification of value.

• A lack of openness and communication among stakeholders.

 

IPO GMP Today

Afcom Holdings Limited IPO’s latest GMP is Rs.80.

Afcom Holdings Limited IPO Timetable (Tentative)

The IPO is scheduled from August 2 to August 6, 2024, with allotment on August 7, refund initiation on August 8, and listing on August 9, 2024.

Events	Date
IPO Opening Date	August 2, 2024
IPO Closing Date	August 6, 2024
IPO Allotment Date	August 7, 2024
Refund Initiation	August 8, 2024
IPO Listing Date	August 9, 2024

 

Afcom Holdings Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 2, close on August 6, and offer a total issue size of 6,836,400 Shares (aggregating up to Rs.73.83 Cr) comprising a whole fresh issue size of 6,836,400 Shares (totaling up to Rs.73.83 Cr).

IPO Opening & Closing Date	August 2, 2024 to August 6, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.102 to Rs.108
Lot Size	1200 Shares
Issue Size	6,836,400 Shares (totaling up to Rs.73.83 Cr).
Offer for Sale	NA.
Fresh Issue	6,836,400 Shares (totaling up to Rs.73.83 Cr).
Listing at	BSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

Afcom Holdings Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.129600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.259200.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Afcom Holdings Limited IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

 

Promoters And Management of Afcom Holdings Limited IPO

• Capt. Deepak Parasuraman

• Mr. Kannan Ramakrishnan

• Wg. Cdr. Jaganmohan Mathena (Retd) 

• Mrs. Manjula Annamalai 

Pre-Issue Promoter Shareholding	58.94%
Post-Issue Promoter Shareholding	-

 

Afcom Holdings Limited IPO Lead Managers

• GYR Capital Advisors Private Limited.
  
  

Dividend Policy

The company has not declared dividends in any financial year.

 

Conclusion

The company has experienced negative cash flow in operating and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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