Active Infrastructures IPO: Issue dates, price, and lot size

Active Infrastructures Limited, a civil and infrastructure developer, is launching its ₹77.83 crores initial public offering (IPO), consisting of a fresh issue of 43 lakh shares. The IPO subscription will be open from March 21 to March 25, 2025, with the company's listing on the NSE SME platform scheduled for March 28, 2025.

The issue offers equity shares with a face value of ₹5, priced between ₹178 and ₹181 per share, with a minimum lot size of 600 shares. Retail investors can subscribe with a minimum investment of ₹1,06,800 (1 lot), while High Net-worth Individuals (HNIs) must invest at least ₹2,17,200 (2 lots). Share allotment is set for March 26, 2025, ensuring a streamlined listing process. This IPO presents an opportunity for investors to participate in India's growing infrastructure sector.

Active Infrastructures IPO details

Active Infrastructures Limited IPO is a fundraise worth ₹77.83 crores comprising purely of a fresh issue with 2,16,000 shares reserved for the market maker Badjate Stock And Shares Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from March 21, 2025, to March 25, 2025, providing an opportunity for investors looking to gain a stake in the civil & infrastructure sector.

Active Infrastructures IPO timeline

The Active Infrastructures Limited IPO opens for subscription on March 21, 2025, and closes on March 25, 2025, with allotment scheduled for March 26, 2025.

Active Infrastructures IPO review

Incorporated in 2007, Active Infrastructures Limited is a civil construction company specialising in infrastructure development and commercial project construction. With a strong presence across India, the company has successfully undertaken projects in Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura. It focuses on critical infrastructure such as roads, bridges, water supply systems, and irrigation while also developing commercial spaces like office complexes, retail centres, and educational institutions. Committed to quality and safety, Active Infrastructures ensures customer satisfaction across all its completed, ongoing, and upcoming projects.

Backed by an experienced management team, the company leverages its expertise in infrastructure and commercial development to optimise resources and maintain high-quality standards. Its diverse portfolio includes key projects like RIAAN Tower, which reflects its focus on modern, sustainable spaces that drive business growth and community engagement. With a workforce of 53 permanent and 150–160 contractual employees, Active Infrastructures continues to expand its order book, reinforcing its position as a trusted name in the construction sector.

The objectives of the Active Infrastructures IPO include funding the company's working capital requirements (₹38.98 crores), repaying or prepaying certain borrowings and providing margin money for bank guarantees (₹16.72 crores), investing in capital expenditure for purchasing construction equipment (₹7.05 crores), and allocating funds for general corporate purposes.

Active Infrastructures IPO financials

As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 36.22%, Return on Capital Employed (ROCE) at 14.90% and a Debt-to-Equity ratio of 2.25. The Return on Net-Worth (RoNW) stands at 36.22%, and the PAT Margin was 10.75%. The Price to Book Value was 6.73. The company’s market capitalisation is ₹271.77 crores.

Amount in ₹ crores

The pre-IPO EPS is at ₹9.75 while the post-IPO EPS will be ₹7.40. Similarly, the pre-IPO Price to Earnings ratio is 18.57 and will become 24.48 post-IPO.

Active Infrastructures IPO strengths

Active Infrastructures Limited has a strong track record, having completed over 75 projects on schedule while maintaining high-quality standards. Specialising in roads, bridges, highways, water supply systems, and urban development, the company is well-positioned for sustained growth. With operations across Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura, it mitigates geographical risks while ensuring revenue stability. Its order book is diversified, with 56 percent in highways, 28 percent in water infrastructure, and 16 percent in urban development, providing long-term project visibility.

An experienced management team and an in-house design and engineering unit strengthen the company's execution capabilities. Financially, it has demonstrated resilience, with revenue growing from ₹89.59 crores in FY23 to ₹97.43 crores in FY24 and a Return on Equity of 36.22 percent. The company is pre-qualified for government projects above ₹200 crores, giving it a competitive edge. A strong client base, with 62 percent of orders from repeat clients, and alignment with initiatives like the National Infrastructure Pipeline position it well for future growth.

Active Infrastructures IPO weaknesses

Project execution risks remain a challenge, with delays due to factors like monsoons impacting timelines, as seen in a 45-day delay in Madhya Pradesh. The company is heavily reliant on government contracts, exposing it to policy shifts and budget reallocations. In FY23, tenders worth ₹72 crores were deferred due to changing state priorities. Additionally, rising raw material costs have increased procurement expenses by 4.8 percent in FY24, pressuring margins under fixed-price contracts.

Financially, high leverage with a debt-to-equity ratio of 2.25 and working capital constraints pose liquidity risks. Outstanding receivables from government agencies stood at ₹38 crores beyond 120 days as of September 2024. Despite operating in multiple states, its business remains concentrated in Maharashtra, Uttar Pradesh, and Madhya Pradesh, making it vulnerable to regional economic and policy changes. Strong competition in the infrastructure sector also necessitates ongoing investment in technology and efficiency to maintain a competitive edge.

Should you invest in the Active Infrastructures IPO?

Being among the early public investors in Active Infrastructures Limited could present an opportunity to participate in the company's growth trajectory in the space of civil & infrastructure sector. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.

FAQs

What is the Active Infrastructures Limited IPO?

The Active Infrastructures Limited IPO is an NSE SME offering consisting of 43 lakh equity shares with a face value of ₹5, aiming to raise ₹77.83 crores. The price band has been set between ₹178 to ₹181 per share, with a minimum order quantity of 600 shares. This IPO will be open for subscription from March 21, 2025, to March 25, 2025. Kreo Capital Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Badjate Stock And Shares Private Limited is the market maker.

When will the Active Infrastructures IPO open?

The Active Infrastructures Limited IPO will open for subscription on March 21, 2025, and will close on March 25, 2025.

When is the Active Infrastructures IPO listing date?

The tentative listing date for the Active Infrastructures Limited IPO is Friday, March 28, 2025.