Infrastructure construction firm AVP Infracon is set to debut its initial public offering (IPO) on March 13, marking its foray into the market. The IPO, categorized as an SME IPO, will see the company offer shares at a price band of ₹71 to ₹75 per share. AVP Infracon intends to raise ₹52.34 crore through the issuance of 69.79 lakh fresh equity shares.
The IPO subscription window will open on March 13 and close on March 15, with the final allotment expected to be determined by March 18, 2024. The minimum investment required for retail investors stands at ₹120,000 for a lot size of 1,600 shares. The company plans to utilize the funds raised for procuring capital equipment, fulfilling working capital requirements, and other general corporate purposes.
Upon listing, AVP Infracon’s shares will be traded on the NSE Emerge platform, with a tentative listing date scheduled for March 20. Share India Capital Services Private Limited serves as the book-running lead manager for the IPO, while Purva Sharegistry India Pvt Ltd is appointed as the IPO registrar.
The company has earmarked 50% of the shares for Qualified Institutional Bidders (QIBs), 35% for retail investors, and the remaining 15% for Non-Institutional Investors (NIIs).
AVP Infracon specializes in the construction of road projects using various methodologies such as Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC). Its portfolio encompasses a wide range of infrastructure development works including expressways, national highways, bridges, irrigation projects, and urban development initiatives such as civic amenities, hospitals, warehouses, and commercial and residential projects. The company primarily operates in Tamil Nadu and has successfully completed over 40 projects valued at approximately ₹31,321.03 lakhs as of January 2024. With a workforce exceeding 100 employees, AVP Infracon is led by promoters D Prasanna and B Venkateshwarlu, whose combined shareholding in the company will decrease to 62.34% post-issue, down from the current 86.5%.
Financially, AVP Infracon reported a net profit of ₹12.05 crore on revenue of ₹115.50 crore in the fiscal year ending March 2023. For the period ending October 2023, the company recorded a profit of ₹8.55 crore and revenue of ₹74.11 crore.
