Afcom Holdings IPO: What Investors Must Know Before Applying?

• Afcom Holdings IPO is a book-built issue of Rs 73.83 crores.
• This upcoming IPO bidding opens on August 2 and closes on August 6, 2024.
• Afcom Holdings SME IPO price is set at Rs 102 - Rs 108 per share.
• The minimum investment required Rs 1,29,600.

Afcom Holdings IPO: Synopsis

Afcom Holdings IPO is open for subscription starting Friday, August 2, 2024, and closing on Tuesday, August ,6 2024. This upcoming IPO's price is Rs 100 to Rs 105 per share. The minimum lot size set for the retail category is 1200 shares. 

Meanwhile, the minimum lot size for the HNI category is 2 lots consisting of 2400 shares. The minimum investment required for retail category investors is Rs 1,29,600 (108 x 1200 shares). However, for the HNI category, the minimum investment amount required is Rs 2,59,200 (108 x 2400 shares). 

Afcom Holdings IPO is a book-built issue of Rs 73.83 crores. This upcoming IPO is an entirely fresh issue of 68.36 lakh equity shares. The allotment for this new IPO is expected to be finalised on Wednesday, August 7, 2024.

Afcom Holdings IPO will be listed on BSE SME on Friday, August 9, 2024. GYR Capital Advisors Private Limited is the book-running lead manager, Link Intime India Private Limited is the registrar, and Giriraj Stock Broking is the market maker for this IPO.

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Afcom Holdings IPO: About the Company

Afcom Holdings Limited was incorporated in 2013 and transports cargo airport-to-airport. It operates cargo flights to ASEAN countries, including Singapore, Indonesia, and Brunei, with a focus on Singapore. 

Afcom Holdings has General Sales and Service Agents in India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan. 

The company signed an agreement with the Air Logistics Group, a division of World Freight Company, a global leader in cargo sales and service. The Air Logistics Group will act as the Company's General Sales and Service Agent in far-eastern countries. 

Additionally, on 13 October 2022, the company agreed with Taylor Logistics Private Limited, a part of the TTK Group, to serve as the GSSA in India. 

As per the latest information, Afcom Holdings has 47 employees, including 21 crew members. 

Afcom Holdings IPO: Objectives

The IPO amount raised from the issue will be allocated for funding capital expenditures, meeting issue expenses, repaying a particular portion of the borrowing, and funding the company's day–to–day capital needs. Additionally, the leftover money will be used for fulfilling general corporate purposes. 

Afcom Holdings IPO: Other Important Details

Time-Table of Afcom Holdings IPO

Afcom Holdings IPO: Financial Metrics (Amt in Rs Lakhs)

Afcom Holdings posted revenue of Rs 8,490.12 lakhs and net profit of Rs 1,358.62 lakhs for the period ending on 31 Mar 2023. Earlier, in the period ending on 31 Mar 2022, the company’s revenue was Rs 4,866.97 lakhs and net profit of Rs 514.80 lakhs.

Minimum Investment: Lot Size Details 

Promoters of Afcom Holdings Limited and Their Holdings

The promoters of Afcom Holdings are Deepak Parasuraman, Mr. Kannan Ramakrishnan, Jaganmohan Mathena and Mrs. Manjula Annamalai. The promoters' shareholdings before the IPO were 58.94%, however after the IPO, shareholdings details are not yet  available. 

Afcom Holdings: Strength of Company

1.     Afcom Holdings operates cargo flights to ASEAN countries, including Singapore, Indonesia, and Brunei.

2.     The company’s fundamentals look strong. Its debt-to-equity ratio is 0.15, and Price to book value is 1.93.

3.     Afcom Holdings’s net profit increased by 70% from Rs 1,358.62 lakhs in 31 Mar 2023 to Rs 2,310.37 in 29 Feb 2024. 

FAQs

1. What are the details of the Afcom Holdings IPO?

Afcom Holdings IPO is a book-built issue of Rs 73.83 crores. This upcoming IPO is an entirely fresh issue of 68.36 lakh equity shares. The allotment for this new IPO is expected to be finalised on Wednesday, August 7, 2024.

2. Who are the lead managers for the Afcom Holdings IPO?

GYR Capital Advisors Private Limited is appointed as the book-running lead manager for the IPO.

3. What is the role of Link Intime India in this IPO?

Link Intime India Private Limited is the registrar for Afcom Holdings Limited, handling the IPO's administrative aspects.

4. How can I apply for the Afcom Holdings IPO?

The public subscription of this new IPO will open on August 2, 2024. Click here to initiate the application process. 

5. How will the net proceeds from the IPO be utilised?

The IPO amount raised from the issue will be allocated to funding capital expenditures, meeting issue expenses, repaying a certain portion of the borrowing, and funding the company's day–to–day capital needs. 

6. How can I check the allotment status of the IPO?

Investors who applied can check the allotment status of the Afcom Holdings Limited IPO by visiting here. For further updates follow Bigul. 

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