Afcom Holdings Limited IPO
- IPO Date02 Aug, 2024 to 06 Aug, 2024
- Listing Date09 Aug, 2024
- Face Value₹10 per share
- Issue Price₹102 to ₹108 per share
- Lot Size1200 Shares
- Minimum Investment₹1,29,600
- Listing AtBSE SME
- Total Issue Size68,36,400 Shares
(aggregating up to ₹73.83 Cr) - Fresh Issue68,36,400 Shares
(aggregating up to ₹73.83 Cr)
- Offer for Sale-
- Issue TypeBook Built Issue IPO
- Share holding pre issue1,80,21,306
- Shareholding post issue2,48,57,706
IPO Dates
Closing Date
06 Aug, 2024
Initiation of Refunds
08 Aug, 2024
Listing Date
09 Aug, 2024
02 Aug, 2024
Opening Date
07 Aug, 2024
Basis of Allotment
08 Aug, 2024
Credit of Shares
Afcom Holdings Limited Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,29,600 |
| B-HNI (Min) | - | - | - |
| S-HNI (Min) | 2 | 2400 | ₹2,59,200 |
| Retail (Max) | 1 | 1200 | ₹1,29,600 |
| S-HNI (Max) | - | - | - |
Afcom Holdings Limited Promoter Holding
The promoter of the company are Capt. Deepak Parasuraman, Mr. Kannan Ramakrishnan, Wg. Cdr. Jaganmohan Mathena (Retd) and Mrs. Manjula Annamalai.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 58.94% | - |
Afcom Holdings Limited COMPANY INFORMATION
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 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. Refer to Afcom Holdings IPO RHP for detailed information.
Incorporated in Feburary 2013, Afcom Holdings Limited is involved in transporting cargo on an airport-to-airport basis. The company has General Sales and Service Agents (GSSAs) in India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan.
The company operates cargo flights to the ASEAN (Association of Southeast Asian Nations) countries, including Singapore, Indonesia, and Brunei, with a focus on Singapore.
The company signed an agreement on 24 September 2021 with the Air Logistics Group, a division of World Freight Company, a global leader in the cargo sales and service business. The Air Logistics group will act as the Company's General Sales and Service Agent (GSSA) in far-eastern countries. Additionally, on 13 October 2022, the company agreed with Taylor Logistics Private Limited, a part of the TTK Group, to serve as the GSSA in India.
As of February 29, 2024, the company has 47 employees, including 21 crews. Among them, they have 10 captains, 6 first officers, 3 Transition Captains, and 2 Trainee First Officers.
AFCOM Holdings Limited IPO Analysis
AFCOM Holdings Limited is embarking on its first public issue with a 100% Book Built Issue. This analysis covers the key aspects of the IPO, highlighting its strengths, weaknesses, opportunities, and risks. We also delve into the specific details of the offering, providing a clear overview for potential investors.
Overview of AFCOM Holdings Limited
AFCOM Holdings Limited, originally incorporated as a private limited company in 2013, has transitioned to a public limited company as of July 2023. The company operates from multiple corporate offices in Chennai, India, and is primarily involved in air cargo services.
Promoters of the Company:
- Capt. Deepak Parasuraman
- Mr. Kannan Ramakrishnan
- Wg. Cdr. Jaganmohan Manthena (Retd)
- Mrs. Manjula Annamalai
Details of the IPO
- Type: Fresh Issue
- Issue Size: 68,36,400 Equity Shares
- Face Value: ?10 per share
- Listing Platform: SME Platform of BSE Limited
Key Dates
- Anchor Portion Offer Opens/Closes: 1st August 2024
- Bid/Issue Opens: 2nd August 2024
- Bid/Issue Closes: 6th August 2024
Key Points of the IPO
- No Market for Equity Shares: This is the first public issue for AFCOM Holdings, meaning there is no established market for the shares.
- General Risks: Investments in equity involve risks. Investors should be prepared for potential loss of investment.
- Absolute Responsibility: The company assures that all material information is disclosed in the prospectus.
Pros and Cons of the AFCOM Holdings IPO
Pros
- Growth Potential: As a company in the air cargo sector, AFCOM Holdings is positioned in a growing industry with increasing demand for air logistics.
- Experienced Promoters: The company is led by experienced individuals with a strong background in logistics and operations.
- Market Opportunity: The listing on the SME platform of BSE provides an opportunity to tap into a broader investor base and enhance capital for expansion.
Cons
- No Prior Market Presence: The lack of an established market for the company's equity shares may result in initial volatility.
- Risk Factors: As outlined in the prospectus, there are inherent risks associated with the company's business and the IPO itself.
- Regulatory Compliance: Adherence to SEBI regulations and other compliance requirements can be challenging and costly.
Understanding the AFCOM Holdings Limited IPO
The IPO of AFCOM Holdings Limited is a significant step for the company as it transitions to the public market. This move is aimed at raising capital to fuel growth and expansion in the competitive air cargo sector.
Investment Highlights
- Company Background: With a decade-long presence in the industry, AFCOM Holdings has established a robust operational framework.
- Issue Details: The IPO comprises 68,36,400 equity shares, offering investors a substantial opportunity to participate in the company's growth.
- Market Potential: Listing on the SME platform of BSE is strategically advantageous for reaching a diverse investor pool.
Risk Considerations
Investors should carefully evaluate the risk factors associated with the AFCOM Holdings IPO. The absence of a prior market for the shares and the general risks of equity investments are crucial points to consider.
Conclusion
The AFCOM Holdings Limited IPO presents a promising investment opportunity with its potential for growth and experienced leadership. However, prospective investors must weigh the pros and cons and consider the risks involved. This comprehensive analysis aims to provide a clear understanding of the IPO, helping investors make informed decisions.
FAQs About Afcom Holdings Limited Ipo
Afcom Holdings Limited IPO will open on 02 Aug, 2024 and close on 06 Aug, 2024. Investors must apply within this period to participate.
The Afcom Holdings Limited IPO price band is set between ₹102.00 and ₹108.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹129600.00.
The Afcom Holdings Limited IPO shares are expected to be listed on 09 Aug, 2024, subject to regulatory approvals and final allotment.
You can track your Afcom Holdings Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Afcom Holdings Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.