Afcom Holdings Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | - |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 102 to ₹ 108 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 68,36,400 shares (aggregating up to ₹ 73.83 Cr) |
| Fresh Issue | 68,36,400 shares (aggregating up to ₹ 73.83 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Shareholding pre issue | 1,80,21,306 |
| Shareholding post issue | 2,48,57,706 |
| Market Maker portion | 3,54,000 shares Giriraj Stock Broking |
About Afcom Holdings Limited IPO
Afcom Holdings Limited is an established international cargo airline with a strong foundation in Chennai. Founded by industry experts with extensive experience across sectors including Defense, IT, Financial Services, Real Estate, and Aviation, the company offers a diverse range of cargo solutions. Key offerings include General Cargo, Flying Fresh, Flying Pharma, Flying Priority, Fly Courier, Project Cargo, Dangerous Goods, and High Value Cargo. The company operates through international hubs, serving destinations across ASEAN countries.
Afcom Holdings Limited differentiates itself by delivering customized, cost-effective services tailored to the air transport industry, aiming to enhance customer satisfaction and provide significant value. Afcom Holdings IPO is a book-built issue of Rs 73.83 crores. The issue is entirely a fresh issue of 68.36 lakh shares. Afcom Holdings IPO opens for subscription on August 2, 2024 and closes on August 6, 2024. The allotment for the Afcom Holdings IPO is expected to be finalized on Wednesday, August 7, 2024. Afcom Holdings IPO will list on BSE SME with a tentative listing date fixed as Friday, August 9, 2024. Afcom Holdings IPO price band is set at ₹102 to ₹108 per share. The minimum lot size for an application is 1200 Shares. The minimum amount of investment required by retail investors is ₹129,600. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹259,200. GYR Capital Advisors Private Limited is the book-running lead manager of the Afcom Holdings IPO, while Link Intime India Private Ltd is the registrar for the issue. The market maker for Afcom Holdings IPO is Giriraj Stock Broking.
Afcom Holdings Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Afcom Holdings IPO Anchor Investors Details
| Bid Date | July 1, 2024 |
| Shares Offered | 1,896,000 |
| Anchor Portion Size (In Cr.) | 20.48 |
| Anchor lock-in period end date for 50% shares (30 Days) | September 6, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | November 5, 2024 |
Company & Financials
Afcom Holdings Limited is a well-managed international cargo airline based in Chennai. Founded by experts with deep experience in Defence, IT, Financial Services, Real Estate, and Aviation, the company uses this broad knowledge to offer extensive cargo solutions worldwide.
A business model is built on three main areas of Afcom Holdings Limited:
- Services: AFCOM provides a wide range of cargo offerings, including General Cargo, Flying Fresh, Flying Pharma, Flying Priority, Fly Courier, Project Cargo, Dangerous Goods, and High-Value Cargo.
- Network: The company operates through key international hubs, focusing on destinations throughout ASEAN countries.
- Specialization: AFCOM is known for delivering customized services tailored to the specific needs of the air cargo industry, offering competitive rates while enhancing the customer experience.
Afcom Holdings Limited is dedicated to becoming a leading force in the cargo industry by continually adapting to evolving market demands and upholding high standards of service.
Objectives of Afcom Holdings Limited IPO
The proceeds from the issue will be utilized for the following objectives:
- Acquisition of Aircraft: Financing the capital expenditure required for leasing two new aircraft.
- Debt Reduction: Repaying or settling a portion of the company’s existing borrowings.
- Working Capital: Supporting the company's working capital needs.
- Corporate Expenses: Covering general corporate expenses.
- Issue Costs: Funding the expenses associated with the issue.
Afcom Holdings Limited IPO Review
Strengths
- 1. Experienced Leadership: Management team with extensive aviation and air cargo expertise.
- 2. Specialized Cargo Handling: Expertise in managing hazardous cargo and adherence to safety standards.
- 3. Regulatory Advantages: Established early-mover advantage with significant entry barriers.
- 4. Growth Strategies: Plans for fleet expansion and market growth in India’s logistics sector.
Risks
1. Customer Concentration: Heavy reliance on the top five clients for revenue.
2. Operational Disruptions: Vulnerability to delays from weather or operational issues.
3. Dependence on Key Personnel: Reliance on key managers and promoters.
4. Legal and Regulatory Risks: Exposure to legal proceedings and regulatory compliance issues.
Afcom Holdings Limited IPO Financial Information
Latest Revenue
13,416.38
₹ Crore
Profit After Tax
2,310.37
₹ Crore
Net Worth
10,087.71
₹ Crore
Total Borrowing
1,547.5
₹ Crore
| Period Ended | Assets | Total Income | Profit After Tax | Net Worth | Total Borrowing | ||||
|---|---|---|---|---|---|---|---|---|---|
| 29 Feb 2024 | 12,929.75 | 13,416.38 | 2,310.37 | 10,087.71 | 1,547.5 | ||||
| 31 Mar 2023 | 8,285.4 | 8,490.12 | 1,358.62 | 7,330.56 | 47.6 | ||||
| 31 Mar 2022 | 2,514.51 | 4,866.97 | 514.8 | 2,181.65 | 3.83 | ||||
| Amount in ₹ Crore | |||||||||
Afcom Holdings Limited Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 26.53% |
| ROCE | 28.30% |
| Debt/Equity | 0.15 |
| RoNW | 22.90% |
| P/BV | 1.93 |
| PAT Margin (%) | 17.28 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 7.54 | 10.14 |
| P/E (x) | 14.33 | 10.65 |
Frequently Asked Questions
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Competitive Strengths
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Afcom Holdings Limited IPO Timeline
| IPO Open Date | Friday, August 2, 2024 |
| IPO Close Date | Tuesday, August 6, 2024 |
| Basis of Allotment | Wednesday, August 7, 2024 |
| Initiation of Refunds | Thursday, August 8, 2024 |
| Credit of Shares to Demat | Thursday, August 8, 2024 |
| Listing Date | Friday, August 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 6, 2024 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2,400 | ₹259,200 |