Introduction

Afcom Holdings Limited, a prominent player in the cargo transportation sector, is gearing up for its Initial Public Offering (IPO). This move has garnered significant attention from investors and industry experts alike. This article delves into the essential aspects of the Afcom Holdings IPO, providing a comprehensive overview to help potential investors make informed decisions.

Afcom Holdings IPO Details

  • IPO Dates: The Afcom Holdings IPO will open for subscription on August 2, 2024, and close on August 6, 2024.
  • Issue Price: The price range for the IPO is set between ₹102 and ₹108 per equity share.
  • Face Value: The face value of each share is ₹10.
  • Market Lot: Investors can bid for a minimum of 1,200 shares, translating to a minimum investment of ₹129,600 at the upper price band.
  • Total Issue Size: The IPO aims to raise approximately ₹69.73 to ₹73.83 crore through the issuance of 6,836,400 shares.
  • Listing: The shares will be listed on the BSE SME platform.
  • Retail Allocation: 35% of the issue is reserved for retail investors.

Company Overview

Afcom Holdings Limited specializes in airport-to-airport cargo transportation, offering crucial supply chain solutions to a diverse client base. The company operates primarily in ASEAN countries, including Singapore, Indonesia, and Brunei, with a particular focus on Singapore.

Afcom has established General Sales and Service Agents (GSSAs) in multiple countries, including India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan. The company’s clientele includes e-commerce marketplaces, direct-to-consumer e-retailers, corporates, and SMEs across various sectors such as FMCG, consumer durables, lifestyle, retail, automotive, and manufacturing.

Financial Performance

Afcom Holdings has demonstrated robust financial growth in recent years:

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

Key Financial Metrics

   KPI   Values            
ROE 26.53%
ROCE 28.30%
Debt/Equity 0.15
RoNW 22.90%
P/BV 1.93
PAT Margin (%) 17.28

Objectives of the IPO

The funds raised through the IPO will be utilized for the following purposes:

  • Capital Expenditure: Leasing two new aircraft to expand operational capacity.
  • Debt Repayment: Prepayment or repayment of certain outstanding borrowings.
  • Working Capital: Funding the company’s working capital requirements.
  • Corporate Purposes: General corporate purposes and covering issue expenses.

Afcom Holdings IPO GMP Trend

Afcom Holdings SME IPO last GMP is ₹100, last updated Aug 6th 2024. With a price band of 108.00, Afcom Holdings SME IPO’s estimated listing price is ₹208 (cap price + today’s GMP). The expected percentage gain/loss per share is 92.59%.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
06-08-2024 Close 108.00 ₹100  91200 ₹208 (92.59%) 6-Aug-2024 13:01
05-08-2024 108.00 ₹100  91200 ₹208 (92.59%) 5-Aug-2024 23:28
04-08-2024 108.00 ₹140  127700 ₹248 (129.63%) 4-Aug-2024 23:25
03-08-2024 108.00 ₹140  127700 ₹248 (129.63%) 3-Aug-2024 23:23
02-08-2024 Open 108.00 ₹140   127700 ₹248 (129.63%) 2-Aug-2024 23:26
01-08-2024 108.00 ₹115   104900 ₹223 (106.48%) 1-Aug-2024 23:27
31-07-2024 108.00 ₹108   98500 ₹216 (100%) 31-Jul-2024 23:25

Afcom Holdings IPO Subscription Status

Afcom Holdings’ Initial Public Offering (IPO) has been a resounding success, with investor demand far exceeding the available shares. The issue was oversubscribed by a massive 172.20 times.

Retail investors showed strong enthusiasm, subscribing 160.35 times their allotted portion. Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) also participated robustly, with subscription levels of 64.08 times and 348.58 times, respectively.

IPO Allotment Status

Afcom Holdings IPO allotment is expected on August 7, 2024.

Afcom Holdings IPO allotment status is not available at this time. Afcom Holdings IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Afcom Holdings Limited IPO allotment status.

To check Afcom Holdings IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Link Intime India Private Ltd either by phone or email. Investors can call on +91-22-4918 6270 or send an email with all relevant details to afcomholdings.ipo@linkintime.co.in.

Promoters and Management

The company is promoted by a team of experienced professionals:

  • Capt. Deepak Parasuraman
  • Mr. Kannan Ramakrishnan
  • Wg. Cdr. Jaganmohan Manthena (Retd)
  • Mrs. Manjula Annamalai

Market Outlook and Investment Considerations

Afcom Holdings Limited operates in a niche market with significant growth potential. The company’s strategic positioning in the ASEAN region, coupled with its strong financial performance and experienced management, makes it an attractive investment opportunity.

Investors should consider the following factors:

  • Growth Potential: Afcom’s expansion plans and increased fleet capacity are poised to drive future growth.
  • Financial Health: The company’s improving revenue, profitability, and efficient capital structure highlight its financial robustness.
  • Market Conditions: Broader market conditions and industry trends will influence the company’s performance post-listing.

How to Apply

Investors can apply for the Afcom Holdings IPO through their demat accounts. The allotment status can be checked on the registrar’s website, Link Intime India Private Ltd.

Conclusion

The Afcom Holdings IPO presents a promising investment opportunity in the burgeoning cargo transportation sector. With a well-defined growth strategy, strong financial performance, and experienced management, Afcom Holdings is well-positioned to capitalize on the increasing demand for efficient supply chain solutions.

Potential investors should conduct thorough due diligence and consider their investment goals and risk appetite before participating in the IPO.