Afcom Holdings Limited, founded in February 2013, specializes in cargo transportation from airport to airport. The company operates as General Sales and Service Agents (GSSAs) in countries including China, Taiwan, South Korea, Japan, Hong Kong, Singapore, and Thailand. The Indian logistics sector, one of the largest globally, is projected to grow to US$365 billion by Fiscal 2026. With a focus on Singapore, Afcom Holdings offers cargo flights to ASEAN nations and has partnered with Taylor Logistics Private Limited in India, part of the TTK Group. As of February 29, 2024, the company employs 47 people.

 Afcom Holdings Limited IPO Overview

The Rs.73.83 crore IPO of Afcom Holdings includes a fully fresh issue of 68.36 lac shares, allocated as follows: 35% to retail investors, 50% to institutional investors, and 15% to non-institutional investors. The IPO is open from August 2 to August 6, 2024, with an expected listing on August 9, 2024, on BSE and SME. The share price ranges between Rs.102 to Rs.108.

To apply for the IPO, [Click Here to Open a Demat Account](#).

 Company Financials

For the fiscal year ending February 29, 2024, Afcom Holdings reported:

- Total Revenue: Rs.13,416.38 lac

- Net Worth: Rs.10,087.71 lac

- EBITDA: Rs.3,299.55 lac

- Total Assets: Rs.12,929.75 lac

Objectives of the Issue

The net proceeds from the IPO will be used for:

- Meeting working capital requirements

- Funding capital expenditure for leasing two new aircraft

- Repayment of certain outstanding debts

- Covering issue costs

- Corporate purposes

Peers

There are no listed peers in a similar business as mentioned in the RHP of the company.

Evaluation

- Price Range: Rs.102 to Rs.108 per share

- P/E Ratio:

  - For FY ended 31 March 2023, with EPS of Rs.7.94, P/E ratio is 13.60x

  - Considering the weighted EPS of Rs.4.83 for the last three years, P/E ratio is 22.36x

 IPO Strengths and Weaknesses

Strengths:

- Expertise in handling risky cargo

- High entry barriers in the industry

- Comprehensive training programs for all aircrew members and staff

Weaknesses:

- Historical negative cash flow

- Overcapacity issues

- Perceived lack of competitive pricing

- Poor economics for many carriers

- Lack of transparency and communication among stakeholders

 IPO GMP Today

The latest GMP for Afcom Holdings Limited IPO is Rs.115.

 Afcom Holdings Limited IPO Timetable

- IPO Opening Date: August 2, 2024

- IPO Closing Date: August 6, 2024

- IPO Allotment Date: August 7, 2024

- Refund Initiation: August 8, 2024

- IPO Listing Date: August 9, 2024

IPO Details

- Face Value: Rs.10 per share

- Issue Price: Rs.102 to Rs.108

- Lot Size:1200 shares

- Total Issue Size: 6,836,400 shares (Rs.73.83 Cr)

- Listing at: BSE, SME

- Registrar:Link Intime India Private Ltd

 IPO Lot Details

- Minimum Lot Investment (Retail): 1 Lot (1200 shares) - Rs.129,600

- Maximum Lot Investment (Retail): 1 Lot (1200 shares) - Rs.129,600

- HNI (Min):2 Lots (2400 shares) - Rs.259,200

Reservation

- Institutional Portion:** 50%

- Retail Portion:** 35%

- Non-Institutional Portion:** 15%

 Promoters and Management

- Capt. Deepak Parasuraman

- Mr. Kannan Ramakrishnan**

- Wg. Cdr. Jaganmohan Mathena (Retd)**

- Mrs. Manjula Annamalai**

 Lead Managers

- GYR Capital Advisors Private Limited

Conclusion

Afcom Holdings Limited is launching an IPO to address financial goals and expand its operations. While the company has experienced negative cash flow in recent years, the IPO aims to provide the necessary capital for growth and stability.

For more insights on Afcom Holdings Limited's IPO, financial performance, and industry prospects, stay tuned to our blog