Afcom Holdings Limited IPO

NiftyTrader • July 31, 2024

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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.