AVP Infracon Ltd. IPO: Review, Valuation, Date & GMP

AVP Infracon Limited IPO  - Complete Overview

Established in 2009, AVP Infracon Limited specializes in constructing road projects using Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) methods. 

The company offers a comprehensive range of services encompassing construction activities. Its operations involve constructing, renovating, and enhancing various infrastructure projects, including technically intricate endeavors such as Expressways, National Highways, Flyovers, Bridges, Viaducts, Irrigation Projects, and Urban Development initiatives like Civic amenities, Hospitals, warehouses, hotels, and both Commercial and Residential Projects in Tamil nadu states.

With over 14 years of industry experience, AVP Infracon Limited boasts a team of over 100 skilled employees, both permanent and contractual, dedicated to realizing the company's objectives. 

To date, the company has successfully executed 40 projects valued at approximately ₹ 31,321.03 lakhs.

 

AVP Infracon Limited IPO Overview

AVP Infracon Limited IPO date is slated to be open for subscription from March 13, 2024, to March 15, 2024. This NSE SME IPO follows a Book Built Issue IPO.

AVP Infracon Limited IPO price is fixed in the range of at Rs.71 to Rs.75 per share. 

The total issue size of this IPO amounts to Rs.52.34 Cr. The company has allocated 35% to retail investors, 50% to institutional and 15% to non instituional investors. 

 

Company Financial

Compared to 31 Mar 2023, AVP Infracon Limited has seen growth in total assets and net worth but decreased in total revenue. The profit after tax has decreased while the total borrowing increased.

(Amount in Lakhs)

Period	31 Oct 2023	31 Mar 2023
Total Assets	17,232.87	14,670.84
Total Revenue	7,411.90	11,550.09
PAT	855.78	1,205.31
Net worth	3,405.31	2,549.66
Reserve & Surplus	1,605.31	2,069.66
Total Borrowings	7,791.95	6,729.31

Revenue bifurcation with respect to  construction and trading business

(Amount in Lakhs)

Category	31 Oct.23	FY 23	FY 22
Construction Activity	6,190.42	9,778.68	6,323.20
Trading Activity	728.27	854.88	65.65
Total	6,918.69	10,633.56	6,388.85

Private and Government-wise revenue bifurcation

(Amount in Lakhs)

Sector	31 Oct.23	FY 23	FY 22
Goverment Sector	4,950.51	7,552.43	3,381.31
Private Sector	1,968.18	3,081.14	3,007.53
Total	6,918.69	10,633.56	6,388.85

 

 

The Objective of the Issue

The fresh Issue from the Proceeds will be utilized to fulfill the following objectives: 

1. To Purchase Capital Equipment 

2. To Meet Working Capital Requirements 

3. General corporate purposes 

4. To meet Public Issue Expenses 

Peers of AVP Infracon Limited IPO

Name of the company	Face value (₹)	EPS(₹)	P/E Ratio
AVP Infracon Limited	10.00	6.40	-
Udayshivakumar Infra Limited	10.00	4.37	13.75
Rachana Infrastructure Limited	10.00	1.22	56.17
H.G. Infra Engineering Limited	10.00	75.68	11.90

 

Evaluation

The IPO is priced within the range of Rs.71 to Rs.75 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 6.7 from the last year, the resulting P/E ratio is 11.2x.

• Taking into account the weighted EPS of Rs 4.15 for the last three years, the P/E ratio amounts to 18.07x.
  
  

Comparative Analysis with Listed Peers

• The industry's average P/E is 34.04x.

As a result, the IPO price range, with a P/E ratio ranging from 11.2x to 18.07x, seems fully priced to the industry average of 34.04x.

IPO's Strengths 

• Experienced and Qualified Team.

• Strong portfolio of roads, bridge and flyovers from state government.

• Quality Assurance.
  
  

IPO weaknesses 

• The company has a short operating history.

• All revenue generated by the company comes from operations conducted solely within Tamil Nadu.

• Negative cash flows have been reported across operating, investing, and financing activities.

• The company operates within a framework of legal statutes and regulatory mandates covering environmental, health, and safety concerns.

• The company holds unsecured loans.
  
  

IPO GMP Today 

The Latest GMP of AVP Infracon Limited  is Rs.20.

AVP Infracon Limited IPO timetable (Tentative)

AVP Infracon Limited IPO is scheduled from March 13 to March 15, 2024, with allotment on March 18, refund initiation on March 19, and listing on March 20, 2024.

Events	Date
IPO Opening Date	March 13, 2024
IPO Closing Date	March 15, 2024
IPO Allotment Date	March 18, 2024
Refund initiation	March 19, 2024
IPO Listing Date	March 20, 2024

AVP Infracon Limited IPO Details 

AVP Infracon Limited IPO, with a face value of Rs.10 per share, opens on March 13 and closes on March 15, 2024, offering 6,979,200 shares at Rs.71 to Rs. 75 per share, with a lot size of 1600 shares, aiming to raise Rs.52.34 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 13, 2024 to March 15, 2024
Face value	₹10 per share
Issue Price	₹71 to ₹75 per share
Lot Size	1600 Shares
Price of 1 lot	₹120,000
Issue Size	6,979,200 shares (aggregating up to ₹52.34 Cr)
Fresh issue	6,979,200 shares (aggregating up to ₹52.34 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Purva Sharegistry India Pvt Ltd

AVP Infracon Limited IPO Lot Details 

For AVP Infracon Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.120,000 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.240,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

 

AVP Infracon Limited IPO Reservation

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

Promoters and Management of AVP Infracon Limited

• Mr. D Prasanna 

• Mr. B Venkateshwarlu

Pre-issue Promoter shareholding	86.5%
Post-issue Promoter shareholding	62.33%

 

AVP Infracon Limited IPO Lead Managers

• Share India Capital Services Private Limited
  
  

Dividend Policy

The company has not distributed any dividends in the previous fiscal years. However, the potential payment of dividends in the future will be contingent upon the financial performance of the company. 

 

 

Conclusion

AVP Infracon Limited engages in construction activities utilizing BOQ and EPC methods. Despite its limited operating history, the company demonstrates promising growth in its financial performance and maintains a robust order book. Seasoned investors may consider bidding for the upcoming IPO after the through evaluation to potentially achieve optimal results.

 

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.

 

 

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