Afcom Holdings
Book Building issueSME₹73.83 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹73.83 Cr
1 lot at cut-off
₹1,29,600
Lot size
1,200shares
Open
02 Aug 2024
Close
06 Aug 2024
Allotment
07 Aug 2024
Listing
09 Aug 2024
Listing performance
Issue price
₹108
Listed at
₹205.20
Listing-day close
₹215.45
Latest price
₹1,315.55
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+1118.10%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Aug 2024 – 06 Aug 2024
- Listing date
- 09 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹108 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹73.83 Cr
- Market cap at offer price
- ₹268 Cr
- Promoter holding
- 58.94% → 42.73% pre-issue → post-issue
- ISIN
- INE0OXY01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 2, LIC Colony Dr.Radhakrishnan Nagar, Thiruvanmiyur, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,96,000 | — | — |
| Market maker | 3,54,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹108
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,29,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,59,200 |
| S-HNI (max) | 7 | 8,400 | ₹9,07,200 |
| B-HNI (min) | 8 | 9,600 | ₹10,36,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
18,96,000
Anchor portion
₹20.48 Cr
at ₹108 per share
Valuation and performance
Valuation at offer price
₹108 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.54 | 10.14 |
| P/E (×) | 14.32 | 10.65 |
| Price to book (×) | 1.93 | — |
| Market cap | — | ₹268 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 22.90%
- ROCE
- 28.30%
- Debt / equity
- 0.15
- PAT margin
- 17.28%
- NAV per share
- ₹55.98
- Price to book
- 1.93
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Afcom Holdings
Afcom Holdings Limited was incorporated in 2013 by Capt. Deepak Parasuraman, an aviation industry veteran with a vision to start a cargo airline business. The company applied for an airline license from the Ministry of Civil Aviation, India and obtained NOC in 2017 to operate cargo airlines. The company operates cargo flights to ASEAN countries, particularly Singapore, Indonesia, and Brunei, transporting general cargo, perishable goods, over-dimensional cargo, hazardous materials, pharmaceuticals, express shipments, high-value goods, and project cargo. Revenue from operations grew from ₹1,388.72 lakhs (FY2021) to ₹13,369.97 lakhs (period ended Feb 29, 2024).
Company Analysis
from RHPAfcom Holdings Limited operates air cargo services connecting India to ASEAN countries including Singapore, Indonesia, and Brunei, spanning the aviation and logistics industries.
Afcom Holdings Limited was incorporated in 2013 by Capt. Deepak Parasuraman, an aviation industry veteran with a vision to start a cargo airline business. The company applied for an airline license from the Ministry of Civil Aviation, India and obtained NOC in 2017 to operate cargo airlines. The company operates cargo flights to ASEAN countries, particularly Singapore, Indonesia, and Brunei, transporting general cargo, perishable goods, over-dimensional cargo, hazardous materials, pharmaceuticals, express shipments, high-value goods, and project cargo. Revenue from operations grew from ₹1,388.72 lakhs (FY2021) to ₹13,369.97 lakhs (period ended Feb 29, 2024).
aviationair cargologistics
Objects of the Issue
- Funding Capital Expenditure towards taking of two new aircraft on Lease basis Up to Rs. 4279.91 lakhs p.27
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company Up to Rs. 1000 lakhs p.27
- Funding of Working Capital Requirement Upto Rs. 800 lakhs p.27
- General corporate purposes p.27
- Issue Expenses p.27
- Funding Capital Expenditure towards taking of two new aircraft on Lease basis Up to ₹4,279.91 lakhs p.81
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company Up to ₹1,000.00 lakhs p.81
- Funding of working capital requirement Up to ₹800.00 lakhs p.81
- General Corporate Purposes p.86
- To meet out the Issue Expenses p.81
- Not explicitly stated in this part of the document
Issue Structure
- Total Issue
- 68,36,400 Equity Shares aggregating Up to ₹ [•] lakhs
- Fresh Issue
- 68,36,400 Equity Shares aggregating Up to ₹ [•] lakhs
- Offer for Sale
- Nil
- Face Value
- ₹ 10/-
Business Model
The company earns revenue through air cargo services by operating cargo flights to ASEAN countries and transporting various types of cargo including general cargo, perishable goods, machinery, chemicals, pharmaceuticals, high-value goods, and hazardous materials.
Business Segments
Machinery, Spare parts, Electronics, Garments, Leather goods, Chemicals (Non-Dangerous Goods) and IT product
Flowers, food items, confectionery, marine products, Live plants, fruits and vegetables, dairy products
Machinery, special equipment, aircraft spare parts and engines
Batteries, paint materials, chemicals, all dangerous goods (from Class 1 to 9)
Bulk raw materials, medicines, tablets, vaccines, injections, gel packed medicines. Service on Air – temperature shipment can be controlled from – 2 to – 5 degrees as per our aircraft facility.
Express envelops, courier parcels
Gold, silver, diamonds, gems and jewellery, precious art and artifacts, currency
Some goods that are fragile that need exceptional handling with special equipment and care at both ends from loading to unloading. It may contain all forms of Cargo such as General Cargos, Over Dimensional Cargo etc.
Airport-to-airport air cargo transportation services between India and ASEAN countries including Singapore, Indonesia, and Brunei
Establishment, organization, management, and operation of various aircraft types for the carriage of goods, mails, and other items on national and international routes; includes commission agents, booking agents, travel agents, and cargo superintendent services
Non-scheduled air cargo services for domestic and international transportation
SWOT Analysis
Strengths
- • Experienced aviation industry management with government security clearance(p.35)
- • Diversified cargo service capabilities across multiple cargo types(p.26)
- • Government approval obtained for cargo airline operations(p.26)
- • Strong revenue growth trajectory over past three years(p.28)
- • Experienced management in aviation cargo industry with early-mover advantage(p.111)
- • Specialized capability in handling hazardous cargo with regulatory approvals(p.111)
- • High regulatory entry barriers protecting competitive position(p.111)
- • Strong revenue growth trajectory and profitability(p.110)
- • Established operational infrastructure with registered office stability(p.126)
- • Experienced management with aviation sector expertise(p.131)
- • Growing revenue from air cargo operations(p.158)
- • Improved profitability trajectory(p.158)
- • Strong liquidity position(p.176)
- • No defaults or loan rescheduling history(p.129)
- • Recognition from industry partners(p.128)
- • Strong financial growth trajectory with 59% revenue growth in nine months ended Feb 2024(p.180)
- • Healthy EBITDA margins of 24.59% demonstrating operational efficiency(p.180)
- • Profitable operations with PAT margin of 17.28% and consistently rising profitability(p.180)
- • Export revenue concentration (98% of sales) indicates established global customer base(p.192)
- • Low leverage with debt-to-equity ratio of 0.15x providing financial flexibility(p.192)
- • Strong net worth growth from ₹337 crore negative in FY2021 to ₹100.88 crore by Feb 2024(p.178)
- • Robust ROE of 26.53% on restated net worth showing strong shareholder value creation(p.180)
Weaknesses
- • Heavy dependence on small customer base for revenues(p.35)
- • Significant negative operating cash flows in recent periods(p.36)
- • High leverage on promoter guarantees for loan facilities(p.40)
- • Registered office not owned by company and subject to lease terms(p.37)
- • Pending litigation involving promoter group member SEBI and CBI(p.35)
- • Outstanding tax litigations and contingent liabilities(p.29)
- • Promoter's educational credentials not independently verifiable(p.42)
- • Significant debt burden with limited financial flexibility(p.83)
- • Small existing fleet concentrated in single aircraft type(p.113)
- • Heavy dependence on GSSA model for customer access(p.106)
- • Limited domestic revenue base creating geographic concentration risk(p.115)
- • Heavy dependence on charter aircraft and outsourced operations(p.170)
- • Accumulated losses in prior years(p.158)
- • Rising interest and finance costs(p.171)
- • Capital work in progress not yet operational(p.168)
- • Pending income tax and GST demands(p.175)
- • Recent increase in short-term borrowings(p.157)
- • Concentration of revenue in export operations(p.170)
- • High concentration in single customer representing 98.71% of total revenue(p.192)
- • Negative operating cash flow of ₹2,179.13 lakhs in nine months ended Feb 2024 due to working capital requirements(p.190)
- • Material increase in finance costs from ₹74.59 lakhs in FY2023 to ₹180.62 lakhs in Feb 2024(p.188)
- • Promoter involvement in pending tax proceedings with aggregate demand of ₹22.72 lakhs across multiple assessment years(p.195)
- • Significant increase in short-term debt from ₹47.60 lakhs to ₹1,528.75 lakhs between FY2023 and Feb 2024(p.192)
Opportunities
- • Growth in India's air cargo sector supported by strong economic growth(p.26)
- • Expansion of ASEAN regional cargo routes(p.26)
- • Capital expansion through IPO proceeds for aircraft leasing(p.27)
- • Strategic use of IPO proceeds for debt reduction and working capital(p.27)
- • Expansion of fleet through aircraft leasing to capture growing cargo demand(p.111)
- • Geographic expansion into additional ASEAN markets(p.112)
- • India's rapid logistics sector growth and economic expansion(p.112)
- • Rapidly growing e-commerce and global trade creating cargo demand(p.104)
- • Expansion into dry lease aircraft operations(p.126)
- • Growing air cargo demand reflected in revenue growth(p.158)
- • Leverage partnerships with established GSA and freight forwarders(p.128)
- • Diversification into special purpose vehicles and business structures(p.126)
- • Expansion of senior management team with aviation expertise(p.132)
- • India's air cargo sector positioned for growth amid expanding international trade(p.181)
- • Expansion of non-scheduled air transport operations providing market growth potential(p.200)
- • Migration to main board of BSE if paid-up capital increases above ₹25 crores, providing liquidity expansion(p.221)
- • Potential to increase frequency and routes given historical growth from 2 to 3 schedules per week(p.188)
Threats
- • Operational disruptions from adverse weather and unforeseen events(p.36)
- • Stringent safety, health and environmental regulations in aviation(p.43)
- • Risk of regulatory approvals and permits not being obtained or renewed timely(p.41)
- • Macroeconomic headwinds and global economic uncertainty(p.45)
- • Currency and foreign exchange volatility affecting international operations(p.46)
- • Interest rate fluctuations affecting debt servicing costs(p.46)
- • Natural calamities and force majeure events affecting operations(p.45)
- • Competition from large international and domestic players(p.112)
- • Volatile fuel costs impacting operational economics(p.112)
- • Regulatory oversight and compliance burden for aircraft operations(p.112)
- • Intense pricing competition limiting profitability(p.112)
- • Regulatory approval delays for new operations(p.162)
- • Exposure to foreign exchange volatility(p.159)
- • Dependence on aircraft charter availability and pricing(p.170)
- • Exposure to global air cargo market cyclicality(p.160)
- • Concentration risk with major customers and partners(p.173)
- • Regulatory changes in aviation and customs procedures(p.121)
- • Extreme economic volatility from global pandemics, wars, and supply chain disruptions affecting demand(p.181)
- • Demand vulnerability during market slowdowns adversely impacting business(p.181)
- • Regulatory changes in civil aviation impacting operational framework and costs(p.181)
- • Dependence on key management personnel with intense competition for senior management talent(p.181)
- • Pending income tax demand of ₹7.38 crore for FY2022-23 creating contingent liability(p.194)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Capt. Deepak Parasuraman | Promoter | 24.47% | — |
| Mr. Kannan Ramakrishnan | Promoter | 1.34% | — |
| Wg. Cdr. Jaganmohan Manthena (Retd) | Promoter | 7.36% | — |
| Mrs. Manjula Annamalai | Promoter | 19.74% | — |
| Capt. Deepak Parasuraman | Promoter | 24.47% | — |
| Wg. Cdr. Jaganmohan Mathena (Retd) | Promoter | 7.36% | — |
| Kannan Ramakrishnan | Promoter | 1.34% | — |
| Manjula Annamalai | Promoter | 19.73% | — |
| Thiagaraja | Promoter Group | 6.02% | — |
| Capt. Deepak Parasuraman | Promoter | 25.05% | — |
| Mr. Kannan Ramakrishnan | Promoter | 1.38% | — |
| Wg. Cdr. Jaganmohan Mathena (Retd) | Promoter | 7.54% | — |
| Mrs. Manjula Annamalai | Promoter | — | — |
| Deepak Parasuraman | Promoter | — | — |
| Kannan Ramakrishnan | Promoter | — | — |
| Manjula Annamalai | Promoter | — | — |
Leadership
Capt. Deepak Parasuraman · Managing Director
Mr. Kannan Ramakrishnan · Whole time Director
P K Raghunathan · CFO
Ms. Sneka S Seshadri · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Afcom Holdings IPO FAQs
What is the lot size of Afcom Holdings IPO?
The minimum lot size of Afcom Holdings IPO is 1,200 shares. One lot costs ₹1,29,600 at the cut-off price.
When does Afcom Holdings IPO open and close?
Afcom Holdings IPO opened for subscription on 02 Aug 2024 and closed on 06 Aug 2024.
What is the listing date of Afcom Holdings IPO?
Afcom Holdings IPO listed on 09 Aug 2024.