The civil construction and infrastructure company Active Infrastructures Limited is preparing to enter trading on the NSE SME platform. The company established itself in 2007 to conduct India-wide commercial and infrastructure operations, including roads, bridges, irrigation systems, and commercial buildings. Through an initial public offering, the company achieves its mission of obtaining capital for increased operations alongside business expansion.

Active Infrastructures Listing Details

The Active Infrastructures will launch its IPO on the NSE SME platform in the trading period from March 21 to March 25, 2025. Active Infrastructures seeks a public offering that uses the growing Indian commercial construction sector and expanding infrastructure development to create business value.

• Listing Price: The company seeks to list its shares on March 28, 2025, through a price range of ₹178 to ₹181. Based on the upper end of the IPO price band, the estimated listing price is ₹182 per share, reflecting a modest 0.55% gain over the IPO price of ₹181.
• Investor Sentiment: Overall subscription reached 1.05 times during the IPO period. The IPO received a total subscription of 1.05 times during its offering period, with Qualified Institutional Buyers reaching their target (1x), Non-Institutional Investors showing more interest at 1.66 times, and Retail Individual Investors subscribing at 0.57 times. The market considered the determined share price overly high regardless of visible investor interest in new shares.

First-Day Trading Performance of Active Infrastructures

• The NSE SME platform has scheduled Active Infrastructures to begin trading on March 28, 2025. The market performance of Active Infrastructures will likely stay close to their issue price of ₹181 because of no recorded premium in the grey market and moderate levels of subscription.
• Retail demand remained low for the IPO, which received ₹4.43 crore investment from anchor investors through 2,44,800 share purchases on March 20, 2025. The company attracted 2,061 applications, with institutional and HNI backing likely supporting first-day trading stability.
• Day 1 market watchers believe trading levels will stay average due to investor performance assessment after listing and projections for FY25.

Market Sentiment and Analysis

The active IPO launch at Active Infrastructures occurs as India’s government dedicates more effort to infrastructure development through roadways alongside smart cities and water management projects.

• Positive Investor Response: An open order book exceeding ₹345 crore enabled the company to operate in multiple states nationwide. Project visibility, along with execution capacity, drives institutions and anchors to participate in initial offers.
• Anticipated Listing Performance: The anticipated stock market performance suggests the issue price will match the opening value because retail participation produces mixed signals, and no premium exists above the initial price. Regular investors who hold investments for extended periods will monitor order conversion statistics and follow quarterly revenue progress after the stock market listing.

Growth Drivers and Challenges

The Indian infrastructure division of Active Infrastructures concentrates on civil works, public utilities, and real estate-related construction.

Growth Drivers:

• Established Operations: Active Infrastructures has performed over 17 years of infrastructure and commercial projects throughout Maharashtra, Madhya Pradesh, Tripura, and Uttar Pradesh.
• Diverse Service Portfolio: Active Infrastructures serves both the governmental and private sectors, with its services consisting of flyovers, water pipelines, exhibition centers, educational campuses, and tourism infrastructure.
• Order Book Strength: The company maintains a reliable outlook for near-term revenue growth through its substantial ₹345 crore order book value.
• Geographical Reach: Operations that extend from first-class and second-class cities enable the company to access multiple public infrastructure possibilities.
• In-house Execution: The company delivers construction projects on time through its in-house abilities, which include skilled engineering teams.

Challenges:

• High Debt Levels: With a debt-to-equity ratio of 2.25, the company faces financial stress that could affect future profitability if not managed post-listing.
• Economic Sensitivity: The business remains vulnerable to policy implementation timing, state regulatory approvals, and program funding payments.
• Retail Caution: Most retail investors show little interest in this share offering (only 0.57x), suggesting they worry about pricing or lack knowledge of the company name.
• Execution Delays: Construction delays of infrastructure projects may result from issues involving land acquisition, weather conditions, workforce difficulties, and material cost price fluctuations.
• Fragmented Market: The business must operate in a highly competitive market environment where established contractors and regional firms continuously pressure it to succeed through bid competitions and outstanding performance standards.

Utilisation of IPO Proceeds 

The company aims to enhance operational capabilities by allocating IPO funds to improve capital distribution, boosting financial performance.

• Working Capital: Project execution and vendor management will receive primary support from working capital funds amounting to ₹38.98 crore.
• Debt Repayment & Bank Guarantee Margin: Through ₹16.72 crores, the company will repay debt and put funds towards bank guarantee margin requirements.
• Capital Expenditure: The funds of ₹7.05 crore will be invested in constructing a fleet of cranes alongside mixers and transport vehicles to enhance self-dependence while decreasing rental expenses.
• General Corporate Purpose: The remaining funds will be allocated to operational expenses, creating business development prospects, and establishing contingency funds.

Financial Performance of Grand Continent Hotels

For the past three financial years, Active Infrastructures has achieved both revenue improvements and increased profitability.

• Revenue: During H1 FY25, Active Infrastructure Ltd generated a revenue amount of ₹33.90 crore. Previously, revenues totalled ₹97.43 crores during FY24 and reached ₹89.59 crores during FY23 after starting at ₹1.11 crore in FY22 with strong post-COVID recovery.
• Net Profit: Net Profit reached ₹5.55 crore in H1 FY25, surpassing previous fiscal year results of ₹10.45 crore and years before that showed ₹9.87 crore (FY23) and ₹0.09 crore (FY22). These reflect consistent bottom-line growth after FY22.
• EBITDA & Margins: EBITDA margins are 10.75%, the Return on Net Worth (RoNW) reaches 36.22%, and the Price Book Ratio is 6.73. High borrowings require better debt servicing and improved cash flow control because of their financial strain.

Active Infrastructures reached an essential strategic milestone by listing on NSE SME, allowing them to improve their capital and acquire building equipment for better operational expansion. Limited retail investment participation exists while the company maintains secure customer requests, substantial presence across multiple infrastructure sectors, and nationwide operating capacity to expand operations effectively. Through its strategic capital investments, the company will build a firm base to capture sectoral demand by focusing on government and commercial projects. Listing on the stock market boosts market visibility and creates enduring value opportunities for India’s expanding infrastructure sector.