Active Infrastructures has officially launched its Initial Public Offering (IPO) today, Friday, March 21, and will continue to accept subscriptions until Tuesday, March 25. The price for each equity share has been set between ₹178 and ₹181, with a face value of ₹5. Investors can place bids for a minimum of 600 shares, with additional bids also in multiples of 600 shares.
Company Overview: Active Infrastructures Limited
Established in 2007, Active Infrastructures Limited is a prominent player in the civil construction sector. The company is dedicated to enhancing India’s infrastructure landscape, focusing on projects that include:
- Roads and bridges
- Water supply systems
- Irrigation projects
- Commercial facilities such as office spaces, retail centers, exhibition halls, and educational institutions.
Active Infrastructures operates across various states in India, including Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura. The firm prides itself on delivering high-quality, safe projects while maintaining a strong commitment to customer satisfaction.
IPO Insights and Market Comparisons
According to the Red Herring Prospectus (RHP), Active Infrastructures has several listed competitors, including AVP Infracon Ltd with a Price-to-Earnings ratio of 25.70 and V.L. Infraprojects Ltd at 6.95.
Subscription Status on Day One
As of now, the Active Infrastructures IPO has seen a 4% subscription rate on its first day. Here’s the breakdown:
- Retail investors: 7% subscribed
- Non-Institutional Investors (NII): 1% subscribed
- Qualified Institutional Buyers (QIB): Not yet subscribed
By 13:49 IST, bids for 151,800 shares had been received out of a total of 3,839,400 shares available, as reported by chittorgarh.com.
Key Details of the IPO
The Active Infrastructures IPO comprises a fresh issuance 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.
The funds raised will be allocated for several strategic purposes, including:
- Financing working capital needs
- Repaying specific loans
- Providing collateral for securing bank guarantees
- Investing in construction equipment
- Addressing general corporate requirements
Kreo Capital Private Limited is leading the IPO as the book-running manager, while Bigshare Services Pvt Ltd serves as the registrar. Additionally, Badjate Stock And Shares Private Limited is the designated market maker for this offering.
Grey Market Premium Insights
As of today, the grey market premium (GMP) for Active Infrastructures’ IPO stands at ₹0, indicating that shares are trading at the issue price of ₹181 without any premium or discount, according to investorgain.com. The grey market premium reflects investor sentiment and their willingness to pay above the issue price.
This IPO marks a significant step for Active Infrastructures as it seeks to strengthen its position in the competitive construction industry. For more updates on IPOs, check out our latest coverage on Grand Continent Hotels IPO, which saw a 36% subscription on its second day.
