Afcom Holdings Limited is launching an IPO with a fresh issue of 68,36,400 shares worth INR 73.83 crores. The company aims to lease two aircraft, repay borrowings, fund working capital, and cover general corporate purposes.
Afcom Holdings IPO – Important Dates
| Afcom Holdings Limited IPO Date | August 2, 2024 to August 6, 2024 |
| Afcom Holdings Limited IPO Listing Date | August 9, 2024 |
| Afcom Holdings Limited IPO Price | INR 102-108 per share |
| Afcom Holdings Limited IPO Lot Size | 1200 Shares |
| Afcom Holdings Limited IPO Total Issue Size | INR 73.83 crores |
| Afcom Holdings Limited IPO Basis of Allotment | August 7, 2024 |
| Afcom Holdings Limited IPO Initiation of Refunds | August 8, 2024 |
| Afcom Holdings Limited IPO Credit of Shares to Demat | August 8, 2024 |
| Afcom Holdings Limited IPO Issue Type | Book Built Issue IPO |
| Afcom Holdings Limited IPO Listing At | NSE SME |
Afcom Holdings Limited IPO – Company Profile
Afcom Holdings Limited specializes in airport-to-airport cargo transport, focusing on people-centric solutions. Their network and routes address supply chain issues, offering effective last-mile connectivity to enhance industry operations and meet customer needs.
Core values include customer focus, service excellence, integrity, trust, innovation, and reliability. This approach emphasizes growth through partnerships, systemic change, and efficiency, enhancing customer savings, boosting competitive efficiency, and fostering global collaboration.
General Sales and Service Agents (GSSAs) represent their airlines globally, managing cargo bookings and customs. Agreements with Air Logistics and Taylor Logistics enhance their supply chain solutions, serving diverse industries through robust logistics infrastructure and partner networks.
Afcom Holdings Ltd IPO Fundamental Analysis
Afcom Holdings Limited Technologies’ financial analysis reveals a mixed performance. Revenue shows strong growth, while equity and liabilities rise, reflecting expansion. Profitability and EPS improve, though RoNW decreases, liquidity weakens, and inventory turnover suggests management challenges.
- Revenue Trend: The revenue increased from ₹4,827.40 lakhs in March 2022 to ₹8,414.42 lakhs in March 2023. The revenue for the current year’s 11-month period ending February 2024 is INR 13,369.97 lakhs, crossing last year’s benchmark.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹514.80 lakhs in March 2022 to ₹2,310.37 lakhs by February 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹4.37 in March 2022 to ₹13.09 by February 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 23.60% to 22.90%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Afcom Holdings IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 29 February 2024 |
| Revenue (₹ in lakhs) | 4,827.40 | 8,414.42 | 13,369.97 |
| Equity (₹ in lakhs) | 2,181.66 | 7,330.57 | 10,087.71 |
| Expenses (₹ in lakhs) | 4,028.85 | 6,674.75 | 10,304.40 |
| Profit and Loss After Tax (₹ in lakhs) | 514.80 | 1,358.62 | 2,310.37 |
| Diluted EPS only (₹) | 4.37 | 7.94 | 13.09 |
| Return on Net Worth (%) | 23.60 | 18.53 | 22.90 |
| NAV per Equity Share (₹) | 87.31 | 41.64 | 55.98 |
| Total Assets (in lakhs) | 2,514.51 | 8,285.40 | 12,929.75 |
| Total Liabilities (in lakhs) | 332.85 | 954.83 | 2,842.04 |
| Debt Equity Ratio | 0.00 | 0.01 | 0.15 |
| Current Ratio (in times) | 8.05 | 6.87 | 3.95 |
| Inventory Turnover Ratio | NA | 29.04 | 10.74 |
Afcom Holdings Ltd IPO Peer Comparison
No listed companies in India engage in a business similar to that of Afcom Holdings Limited. Accordingly, they have not provided an industry comparison about their company.
Afcom Holdings Ltd IPO Objective
The main objective of Afcom Holdings Limited is to fund capital expenditure for leasing two aircraft, prepay or repay borrowings, and support working capital requirements.
- Funding Capital Expenditure towards taking two new aircraft on a lease basis: The company plans to allocate INR 42.79 crores of net proceeds for capital expenditure, including leasing two aircraft at USD 200,000 per month. These rental payments will be managed through internal accruals to support operational costs.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by their company: The company plans to utilize INR 10 crores from the net proceeds for prepayment or repayment of loans from M/s Share India Fincap Private Limited, aiming to reduce borrowings and improve the debt-equity ratio.
- Funding of Working Capital Requirement: The company aims to utilize INR 8 crores from the net proceeds to fund working capital needs for FY 2024-2025, addressing significant requirements and supporting future growth. Current sanctioned facilities amount to INR 2.23 crores.
- General corporate purposes: The company will deploy the balance of funds towards general corporate purposes, including investments per the company’s policy and covering exigencies, salaries, and other operational expenses.
Afcom Holdings IPO Risks And Challenges
Afcom Holdings Limited’s risk includes potential negative publicity from legal issues involving a promoter, dependency on top customers for revenue, and operational disruptions like weather delays affecting timely deliveries, which could impact financial standing and profitability.
- Legal proceedings involving P Karthik Iyer Parasuraman, a promoter group member, do not directly impact the company. However, adverse outcomes may negatively affect their reputation and financial condition due to potential negative publicity.
- In recent years, their top five customers contributed 98.71% to 100% of revenues. Losing any of these customers or experiencing reduced business could significantly impact their operations, cash flows, and profitability.
- Adverse weather and operational disruptions can impact timely deliveries in the Air Cargo industry. Delays may erode customer trust, reduce future contracts, and affect their financial standing.
Afcom Holdings Ltd IPO – Industry & Market Potential
The Indian logistics sector, growing from US$216 billion in 2020 to an expected US$365 billion by 2026, benefits from economic growth, improved infrastructure, regulatory support, digital economy expansion, and increased consumerism and investment.
Fueled by e-commerce and technology, India’s logistics sector, worth USD 250 billion in 2021, is projected to reach USD 380 billion by 2025, driven by advancements and government initiatives to lower logistics costs to 10% of GDP.
Technological advancements like TMS and WMS have significantly enhanced operational efficiency in India’s logistics industry, which includes transportation, warehousing, and value-added services. Roads lead with a 73% share, reflecting robust infrastructure development.
Afcom Holdings Limited IPO – Type of Offer
Afcom Holdings Limited is launching an IPO with a fresh issue of 68,36,400 shares worth INR 73.83 crores. The company aims to lease two aircraft, repay borrowings, fund working capital, and cover general corporate purposes.
Afcom Holdings IPO Offer Size
The offer size of Afcom Holdings Limited is INR 73.83 crores, consisting of a fresh issue of 68,36,400 shares. The company seeks funds to lease two aircraft, repay borrowings, fund working capital, and cover general corporate purposes.
Afcom Holdings Ltd IPO Allotment Structure
Afcom Holdings Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 354,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 354,000 shares, are reserved for marker makers.
How to apply for an Afcom Holdings IPO?
To apply for the Afcom Holdings Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Afcom Holdings Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Afcom Holdings Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Afcom Holdings IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Afcom Holdings Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Afcom Holdings Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Afcom Holdings Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Afcom Holdings Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Afcom Holdings Ltd IPO Offer Registrar
The registrar for the Afcom Holdings Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, Lal Bahadur Shashtri Marg,
Vikhroli (West), Mumbai – 400 083, Maharashtra, India
Telephone: +91-022-810 811 4949
Email: [email protected]
Website: www.linkintime.co.in
Afcom Holdings Limited IPO – FAQs
1. What is the allotment date of the Afcom Holdings IPO?
The allotment date of the Afcom Holdings Limited IPO is August 7, 2024.
2. What is the price band of the Afcom Holdings IPO?
The price band of the issue is INR 102-108 per share.
3. What is the size of the Afcom Holdings IPO?
The offer size of Afcom Holdings Limited is INR 73.83 crores, consisting of a fresh issue of 68,36,400 shares. The company seeks funds to lease two aircraft, repay borrowings, fund working capital, and cover general corporate purposes.
4. What is the listing date of the Afcom Holdings IPO?
The listing date of Afcom Holdings Limited’s IPO is August 9, 2024.
