AVP Infracon Limited IPO

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AVP Infracon Limited specializes in the construction of road projects utilizing both Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) methodologies. The company’s portfolio is diversified across technically complex and high-value projects, including expressways, national highways, flyovers, bridges, viaducts, irrigation projects, and urban development projects, among others. With over 14 years of experience, AVP Infracon Limited boasts a skilled workforce of over 100 employees, including contractual staff, committed to executing projects from conceptualization to completion. This integrated approach emphasizes de-risking projects and enhancing investment returns.

Achievements and Operations

To date, AVP Infracon Limited has successfully completed 40 projects and currently has 14 projects underway, including 12 ongoing projects and 2 prospective projects where it is positioned as the lowest bidder (L1). The company’s strategic collaborations, such as joint ventures with M/s. Jawahar Constructions and M/s CDR & Co. Constructions JV, underscore its capability to undertake and execute extensive projects, thereby strengthening its order book and project pipeline.

Service Offerings

AVP Infracon Limited’s service offerings encompass a wide range of pre-construction and post-completion services. These include designing services, where the company leverages in-house capabilities for engineering and design, estimation services for meticulous project planning and execution, and procurement and construction management services for efficient resource utilization. The company’s pre-construction services are geared towards ensuring schematic design excellence, streamlined approvals, procurement efficiency, and accurate budgeting. Upon project completion, AVP Infracon Limited focuses on impeccable handovers, maintenance guidance, and final inspection excellence, ensuring client satisfaction and project durability.

In conclusion, AVP Infracon Limited stands as a testament to visionary leadership, strategic partnerships, and an unwavering commitment to quality and innovation. As the company continues to navigate the complexities of the infrastructure development sector, its foundational strengths and strategic endeavors position it for continued success and growth in the years to come.

Objects of the AVP Infracon Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Purchase Capital Equipment, ii. To Meet Working Capital Requirements, iii. General corporate purposes, and iv. To meet Public Issue Expenses.

AVP Infracon Limited IPO Details:

Open Date: Mar 13 2024
Close Date: Mar 15 2024
Total Shares: 6,979,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 52.34 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 71 - 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 20 2024

Promoters And Management:

Mr. D Prasanna, aged 43 years, is the Promoter, Chairman, Managing Director and Chief Executive Officer of the Company. A visionary leader with high goals is the pillar behind the growth of the company in leaps and bounds. He has done Bachelor of Engineering in Computer Science and Engineering in 2001 from Bharathidasan University, Tamil Nadu. With a background in various roles in different companies, his dream was to establish his own organization. Recognizing the need for diversification, he chose the construction industry in 2008. Prasanna's excellent interpersonal skills secured early contracts, and his innovation and hard work expanded the company into State and National highways, government departments, and Ready Mix Concrete units nationwide. As a two-term president of the Lions Club and a member for over two decades, he received an Honorary doctorate for philanthropic efforts from World Tamil University. Mr. B Venkateshwarlu, aged 42 years, is the Promoter and Managing Director of the Company. He completed his Bachelor of Engineering in Information Technology in 2002 from Bharathidasan University, Tamil Nadu. A tech savvy leader has led to the growth of the company by executing each and every project of the company to perfection whilst making profits all along. He always had entrepreneurial goals, he worked for few companies and the cooperative bank in Telangana as a Network engineer and a qualified CCNA professional. Mr. B Venkateshwarlu fondly known as BVK by associates always has an eye for latest technology and is highly efficient in macro management and known for his persistence his never-ending business conversation with his partners are the building blocks of the company. His stubborn nature was the key to the company’s execution of every project on time. He was known to the entire vertical of every department he worked with ensuring smooth work progress. Mr. Vasanth D, aged 40, serves as the Whole Time Director of the company. Proudly identifying as a "salesman," he plays a crucial role in promoting the brand and excels in commercial dealings, contributing to the company's market leadership in various ventures. He has obtained a Bachelors degree in engineering from Bharathidasan University and placed from the campus he worked with Naukri.com, Bangalore in add space and database selling in which he excelled and made break through and attached renowned clients like Infosys and Tata for the first time to his employers which worthed a fortune. He trained the best of best recruiters he always wanted to have his own recruitment firm which eventually happened in 2009. After a brief period in real estate and residential construction, Vasanth turned his focus to the commercial Ready Mix Concrete (RMC) wing of AVP Infracon, contributing to its exponential growth.

Financials of AVP Infracon Limited IPO:

Particular (In Lakh) Mar-23 6MFY24
Revenue from Operations 11,498 7,405
Cost of Material Consumed 4696 3546
Other Direct Expenses 3775 1626
Employee Cost 461 347
Other Expenses 279 151
EBITDA 2287 1735
EBIDTA Margin 19.89% 23.43%
Other income 52 6
Depreciation 290 181
Interest 439 357
Profit before tax 1610 1203
Tax 395 328
Net profit 1205 856
NPM (%) 10.43% 11.55%

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP MCap (Cr)
AVP Infracon Limited 115 12 4.82 15.5 75 187
Udayshivakumar Infra Limited 287 16 3.76 13.6 51 285
Rachana Infrastructure Limited 63 2 1.21 45 60 113
H.G. Infra Engineering Limited 4622 493 75.6 11.5 895 5833
*All the Data is as per 2023

Lead Manager of AVP Infracon Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of AVP Infracon Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

AVP Infracon Limited Plot No. E-30, Second floor, 2nd Avenue, Besant Nagar, Chennai- 600090 Phone: +91-44-48683999 Email: cs@avpinfra.com Website: http://www.avpinfra.com/

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