Afcom Holdings IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

Up to 68,40,000 equity shares aggregating up to ₹ [●] lakh

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About Afcom Holdings Limited

Afcom Holdings Limited, formerly known as Afcom Holdings Private Limited, began its journey in 2013 with a vision to establish a cargo airline business under the leadership of Capt. Deepak Parasuraman, a seasoned veteran in the aviation industry. Originally incorporated as a private limited company, it transitioned to a public limited company in 2023.

Securing the necessary approvals from the Ministry of Civil Aviation in 2017 enabled the company to commence cargo flights, primarily focusing on ASEAN countries, notably Singapore.

Backed by a dedicated senior management team with a wealth of experience in cargo logistics and forwarding, Afcom Holdings is well-positioned to seize future growth opportunities. With a diverse board comprising both management executives and independent members, the company is well-equipped to navigate the dynamic landscape of the industry, leveraging expertise in marketing, finance, and corporate governance.

Industry Outlook:

Despite challenges like inflation and tightening monetary policies, the global economy is projected to grow by 3.1% in 2024 and 3.2% in 2025. With increasing global and domestic economic activity, Afcom Holdings can expect a rise in demand for cargo services, particularly in sectors experiencing growth spurts.
India's robust economic growth, forecasted to be one of the fastest-growing major economies, positions it as a key player in the global arena. With a GDP expected to reach $2-2.5 trillion by 2025 and significant growth in private consumption.
India's industrial sector, supported by initiatives like the PLI scheme and regulatory reforms, is poised for robust growth, projected at 8% per annum. Additionally, advancements in logistics efficiency, highlighted by initiatives like ULIP, contribute to reducing costs and enhancing productivity, further boosting economic prospects. As India emerges as a key player in the global economy, Afcom Holdings can strategically position itself to capitalise on the country's economic ascent, potentially expanding its market presence and revenue streams.

Afcom Holdings Limited IPO Details

Afcom Holdings Limited IPO Dates

The exact dates are yet to be announced.

Afcom Holdings Limited IPO Price Band

The exact price range is yet to be announced.

Afcom Holdings Limited IPO Lot Size

The exact lot size is not announced yet.

Afcom Holdings Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

The company plans to utilise ₹4,279.9 Lakhs of the net proceeds for acquiring two new aircrafts on a lease basis. This includes various expenses such as lease deposits, maintenance costs, customs duties, insurance, and equipment installations for both aircraft.
The company intends to use up to ₹1,000.00 Lakh from the net proceeds to prepay or repay a portion of its outstanding loans, particularly from M/s Share India Fincap Private Limited.
To meet its working capital needs for Fiscal 2024-2025, Afcom Holdings Limited plans to allocate up to ₹800 Lakh from the net proceeds. The current working capital estimate stands at ₹27,169.49 Lakh, with additional funding required for future growth.
The remaining balance of the net proceeds will be utilised for general corporate needs and business requirements. It encompasses investments, meeting operational expenses, salaries, and other requirements approved by the board.

Peer Details

Since Afcom Holdings Limited operates in the air cargo business, the industry has a limited number of players. As a result, there are no other companies similar to Afcom Holdings Limited that are publicly listed for comparison or benchmarking.

How to Check the Allotment Status of the Afcom Holdings Limited IPO?

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Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of Afcom Holdings Limited IPO

Registered office: No. 1/47, M C Road, Kalady, Ernakulam, Aluva-683574, Kerala, India
Phone: +9172592 87215
E-mail:cs@tolins.com

IPO Financials

Particulars	As at February 29, 2024	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operation (in ₹ lakh)	13369.97	8414.42	4827.40	1388.72
Profit After Tax (PAT) (in ₹ lakh)	2310.37	1358.62	514.80	(420.31)
Cash and Cash Equivalents (in ₹ lakh)	262.06	671.26	53.49	10.89
Return on Net Worth (%)	22.90%	18.53%	23.60%	124.65%
Debt-Equity Ratio	0.15	0.01	0.00	(4.36)
Return on Equity (%)	26.53%	28.57%	55.82%	247.20%
Return on Capital Employed (RoCE) (%)	34.63%	39.94%	59.44%	(103.67%)
EBITDA (in ₹ lakh)	3299.55	1915.34	991.39	-598.23

Know before investing

Strengths

Afcom Holdings Limited benefits from a highly experienced management team, including Capt. Deepak Parasuraman and Wg. Cdr Jagan Mohan Manthena, who brings extensive knowledge and networks from their backgrounds in aviation and air cargo. This depth of experience provides a solid foundation for the company's growth plans.
The company is well-equipped and trained to handle hazardous cargo, ensuring compliance with stringent regulations and international safety standards. This expertise enables Afcom Holdings Limited to successfully manage specialised cargo, enhancing its competitive edge in the industry.
Operating in a highly regulated industry with significant entry barriers, Afcom Holdings Limited benefits from its early-mover advantage. The company possesses the necessary clearances, infrastructure, and operational background, acting as a natural barrier to potential competition and solidifying its market position.
Afcom Holdings Limited has outlined clear strategies for growth, including fleet expansion and market expansion. With plans to acquire additional aircraft and capitalise on the growth potential in the Indian logistics sector, particularly in e-commerce and trade, the company is well-positioned to seize opportunities and drive future success.

Risks

Afcom Holdings Limited relies heavily on its top five customers, who contribute a significant portion of its revenues. Any loss of business from these key customers could adversely affect the company's revenues and profitability.
As an operator in the air cargo industry, Afcom Holdings faces the risk of delays in delivering goods due to various factors such as adverse weather conditions and operational disruptions. Any delays in delivering goods could harm the company's business by eroding customer trust, potentially leading to decreased future contracts and impacting financial standing.
The company heavily relies on its individual promoters and key managerial personnel for the successful operation and management of its business. Any inability to retain these key individuals or attract suitable replacements could adversely affect the company's operations, strategy implementation, and relationships with stakeholders.
Afcom Holdings is involved in various legal proceedings, and any adverse decision in these proceedings could have an adverse effect on its business, results of operations, and financial condition. Additionally, the company faces risks related to regulatory compliance, such as delays or defaults in filing statutory forms, which could lead to penalties and regulatory actions, impacting its financial position and reputation.