AVP Infracon IPO (NSE SME) Overview

AVP Infracon Limited is engaged wide range of infrastructure development works, including construction, renovation, and civil works such as Expressways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development, Municipal Facilities, Hospitals, Warehouses, Hotels, and other commercial and residential ventures. AVP Infracon IPO is a book built issue of Rs 52.34 crores. The issue is entirely a fresh issue of 69.79 lakh shares.

IPO opensMar 13, 2024
IPO ClosesMar 15, 2024
IPO Size (Rs.)₹52.34 Cr
IPO Size (shares)6,979,200 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹71 to ₹75 per share
Minimum Lot1600 Shares
Listing AtNSE SME
NII Quota~50%
Retail Quota~50%
 Lead ManagerShare India
RegistrarPurva
Market makerShare India Securities
.

About AVP Infracon Limited:

  • AVP Infracon Limited was incorporated in 2009 in Chennai.
  • Ther Company has 14 (fourteen) years of experience in the business and have 100+ experienced employees (including contractual).
  • Their expertise spans a wide range of infrastructure development works, including construction, renovation, and civil works.
  • AVP Infracon Limited specializes in complex and high value projects. These include Expressways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development, Municipal Facilities, Hospitals, Warehouses, Hotels, other commercial and residential projects.
  • Mr. D Prasanna and Mr. B Venkateshwarlu are the promoters of the company.

Financials:AVP Infracon Limited

Particulars/ Rs LacsOctober 31, 2023March 31, 2023
Revenue from operations7,405.3311,498.08
Profit After Tax855.781,205.31
Share Capital1,800.00480
Net worth3,405.312,549.66
EPS (Post Bonus)4.756.7
NAV18.9214.16
Total Borrowings7,791.956,729.31
Post issue Share Capital2,498 
FV10.0 
IPO price75.0 
EPS Fy234.8 
PE Fy2315.5 
EPS Fy24 (annualized)6.9 
PE Fy24  (annualized)10.9 
Market cap in Lacs18,735.0 
Market cap / Sales1.63 

Anchors: AVP Infracon IPO

AVP Infracon IPO: Salient Points

  • AVP Infracon has executed infra project of total 400 crore till date and its operations are in Tamil Nadu only.
  • Clients
  • The Net Proceeds are proposed to be used for purchasing capital equipment, meeting working capital needs, covering public issue expenses, and general corporate purposes.
  • They have now ventured into collaborations to handle more extensive projects.
    • In this regard they have established a joint venture with M/s. Jawahar Constructions, focusing on four-laning road construction work, with a 10% share in proportion. This joint venture is named JWP-AVP. The contract value of the said project is ₹14,535.03 lakhs.
    • On August 20, 2023, they have formalized a joint venture through an agreement with M/s CDR & Co. Constructions JV, holding an 20% share in the construction aspect of the EPC contract. This joint venture is named CDR-AVP (Joint Venture). The tender value of the said project is ₹ 32,289 lakhs. They have applied for this tender and it is yet to be awarded.
  • Peers:
CompanyCMP (₹)Revenue(₹cr)Net Profit(₹ cr)NPM %PEMacp/salesRONW%
AVP Infracon Limited75106.312.111.3%15.5(11)1.646.18%
Udayshivakumar Infra Limited49286.9165.6%12.90.511.11%
Rachana Infrastructure Limited5563.52.263.6%40.95.832.51%
H.G. Infra Engineering Limited9074622.049310.7%11.61.1425.66%
  • Its revenue solely depends from operations in Tamil Nadu.
  • AVP Infracon has a robust order book comprising projects for roads, bridges and flyovers secured by various state government bodies.
  • AVP Infracon Limited has successfully completed 40 projects, amounting to approximately 313 crore lakhs till date.
  • As of now they have total 14 projects including 12 on-going projects worth approximately ₹ 20,188.91 lakhs, and 2 additional projects worth approximately ₹ 3,421.34 lakhs wherein AVP Infracon Limited is L1
  • AVP Infracon IPO is coming at a PE ratio of 15.5x (fy23 earnings) and 11x (Fy24 annualized earning)
  • I may apply in AVP Infracon IPO in a limited way subject to availability of funds. Market conditions right now are quite bad for new listings. Margin of safety is not high.
  • It may be noted that many times my expectations have proved to be wrong & I have been forced to sell or hold the stock in loss. Current market conditions call for lot of caution.
  • Share India Capital Services Private Limited has a good record as a Lead Manager. They have handled IPOs of Pune E-Stock Broking, Wise Travel India Limited, New Swan Multitech Limitd, Krishca Strapping Solutions Limited, De Neers Tools Limited, Quicktouch Technologies, A G Universal Limited, Exhicon Events Media Solutions Limited, Maiden Forgings Limited, Humming Bird Education Limited, Anmol India Limited.
  • GMP as per Social media is around Rs. 20. It may be noted that such rates are perhaps in thin deals and may not be even indicative. I steer clear of any deals in GMP however lucrative they may appear, nor I have any access to any grey market operator.
  • SME IPO are much more risky and volatile than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management. I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. These certifications are for 3 year period and are no more valid. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF/IPO investments have high degree of inherent risk.

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