Afcon Holding Limited IPO opens on August 2, 2024, and closes on August 6, 2024. The allotment for the Afcon Holding IPO is anticipated to be completed on Wednesday, August 7, 2024. The IPO will be listed on the BSE and SME, with a tentative date of Friday, August 9,2024.
The price band for the Afcon Holding IPO is set at Rs 102 to Rs 108 per share. The IPO is a book-built issue of Rs 73.83 crores, entirely a fresh issue of 68.36 lakh shares.
Afcom Holdings IPO Details
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹102 to ₹108 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 6,836,400 shares (aggregating up to ₹73.83 Cr) |
| Fresh Issue | 6,836,400 shares (aggregating up to ₹73.83 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Shareholding pre-issue | 18,021,306 |
| Shareholding post-issue | 24,857,706 |
| Market Maker portion | 354,000 shares |
Afcom Holdings IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2400 | ₹259,200 |
Afcom Holdings IPO Objectives
The objectives of the Issue are:
- Funding Capital Expenditure towards taking of two new aircraft on a Lease basis;
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- Funding of working capital requirement
- To meet the Issue Expenses
- General corporate purposes.
About Afcom Holdings Limited
Incorporated in February 2013, Afcom Holdings Limited specializes in transporting cargo on an airport-to-airport basis. The company has established a network of General Sales and Service Agents (GSSAs) in India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan. It operates cargo flights to ASEAN countries, including Singapore, Indonesia, and Brunei, with a particular focus on Singapore. On September 24, 2021, Afcom Holdings Limited signed an agreement with the Air Logistics Group, a division of World Freight Company, which acts as the company’s General Sales and Service Agent (GSSA) in far-eastern countries. Additionally, on October 13, 2022, the company agreed with Taylor Logistics Private Limited, a part of the TTK Group, to serve as its GSSA in India. As of February 29, 2024, Afcom Holdings Limited employs 47 people, including 21 crew members, comprising 10 captains, 6 first officers, 3 transition captains, and 2 trainee first officers.
Afcom Holdings Limited Financial Information
| Period Ended | 29 Feb 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 12,929.75 | 8,285.40 | 2,514.51 | 899.92 |
| Revenue | 13,416.38 | 8,490.12 | 4,866.97 | 1,388.72 |
| Profit After Tax | 2,310.37 | 1,358.62 | 514.80 | -420.31 |
| Net Worth | 10,087.71 | 7,330.56 | 2,181.65 | -337.19 |
| Reserves and Surplus | 8,285.58 | 5,570.19 | 1,931.78 | -549.95 |
| Total Borrowing | 1,547.50 | 47.60 | 3.83 | 1,471.32 |
Afcom Holdings 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 Timeline
Afcom Holdings IPO opens on August 2, 2024, and closes on August 6, 2024.
| 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 |
| A 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 |
Conclusion
The Afcom Holdings IPO, set to open on August 2, 2024, and close on August 6, 2024, offers an attractive investment opportunity with a price band of Rs 102 to Rs 108 per share. The IPO aims to raise Rs 73.83 crores through a fresh issue of 68.36 lakh shares, with key objectives including funding capital expenditure for leasing new aircraft, repaying certain borrowings, and covering working capital needs. The company’s strong financial growth, robust network of General Sales and Service Agents (GSSAs) across Asia, and strategic partnerships highlight its potential. Investors can look forward to the IPO’s listing on the BSE and SME on August 9, 2024, making it a notable event in the market.
