Bumper Debut: Afcom Holdings lists at ₹108, 90% premium to IPO price

Afcom Holdings Listing: Shares of Afcom Holdings made an impressive debut on the BSE SME today, August 9 (Friday), listing at ₹205.20, a 90 percent premium over its issue price of ₹108.

Following the remarkable debut, the stock surged by as much as 99.5 percent, reaching an intraday high of ₹215.45.

This strong listing follows the overwhelming response to its initial public offering (IPO). The SME IPO was subscribed 303.03 times over the three-day bidding period. Investors bid for 138.98 crore shares against the 45.86 lakh shares on offer. The Non-Institutional Investors (NII) portion was the most subscribed at 697.88 times, followed by the retail category at 202.83 times, while the Qualified Institutional Buyers (QIB) quota was subscribed 186.23 times.

IPO Details

The ₹78.83 crore IPO of Afcom Holdings was open for subscription from August 2-6, with a price band of ₹102 to ₹108. The IPO consisted entirely of a fresh issue of 68.36 lakh shares, with no offer for sale component.

The net proceeds from the IPO are intended for capital expenditure on leasing two new aircraft, prepayment or repayment of outstanding borrowings, funding working capital requirements, and general corporate purposes, as stated by the company.

The minimum lot size for an application was 1,200 shares, requiring a minimum investment of ₹1,29,600 from retail investors.

GYR Capital Advisors Private Limited served as the book-running lead manager for the Afcom Holdings IPO, with Link Intime India Private Ltd as the registrar and Giriraj Stock Broking as the market maker.

Afcom Holdings is an international cargo airline specializing in cargo operations. The company, which began in Chennai, India, now provides cargo transportation solutions to various countries through international hubs.

According to the company's website, Afcom Holdings offers products including General Cargo, Flying Fresh, Flying Pharma, Flying Priority, Fly Courier, Project Cargo, Dangerous Goods, and High Value Cargo.

The company is promoted by Capt. Deepak Parasuraman, Kannan Ramakrishnan, Wg. Cdr. Jaganmohan Mathena (Retd), and Manjula Annamalai.

For the 11 months ending February 2024, Afcom Holdings reported revenue of ₹133.69 crore, EBITDA of ₹32.99 crore, and net profit of ₹23.10 crore. In FY23, the company posted revenue of ₹84.14 crore, EBITDA of ₹19.15 crore, and PAT of ₹13.58 crore.