AVP Infracon shares list at 5% premium on NSE SME platform

Road construction company AVP Infracon made a decent debut on the National Stock Exchange of India (NSE) on Wednesday, March 20, listing at a premium of over 5% to the issue price.

Shares of the company listed at ₹79 per share on NSE SME platform, Emerge, compared to the issue price of ₹75 per share, showing a premium of 5.33%.

In the first 40 minutes of listing, around 14.1 lakh shares of the company changed hands while the traded value stood at ₹11 crore.

AVP Infracon shares later gave up some of the gains to trade at ₹75.05 per share, down by 5% from the listing price, due to selling pressure on the counter.

AVP Infracon Ltd launched its initial public offer (IPO) on the NSE SME platform to raise a total of ₹52.34 crore from investors. The issue comprised a fresh issue of a fresh issue of 69.79 lakh shares. It opened for subscription on March 13 and closed on March 15. The IPO price band was ₹71-75 per share.

The minimum lot size was 1600 shares. The minimum amount of investment for retail investors was ₹120,000.

After the completion of the bidding, the IPO was subscribed 21.45 times. Applications for 9,39,18,400 equity shares were received against 4,377,600 equity shares on offer.

Qualified institutional buyers’ category was subscribed 1.05 times. Non-Institutional Buyers’ portion was booked a whopping 46.15 times while the retail investors’ portion was subscribed by 22 times.

AVP Infracon had raised ₹14 crore from anchor investors at a price of ₹75 per share.

AVP Infracon has proposed to utilise the IPO proceeds for purchasing capital equipment and funding working capital requirements. The company will utilise ₹15 crore for buying road laying equipment, loading equipment, batching plant equipment and material handling equipment.

It has proposed to utilise ₹35 crore to meet working capital requirements and the rest for general corporate purposes.

About AVP Infracon

Founded in 2009, AVP Infracon is in the business of road construction projects based on Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) methods.

It is involved in infrastructure developmental works, construction works and high-value projects. The company constructs Expressways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development - Civic amenities, Hospitals, warehouses, hotels and other Commercial and Residential Projects.

According to the Red Herring Prospectus, it has 12 on-going projects worth approximately ₹201.88 crore and two additional projects worth ₹34.21 crore wherein AVP Infracon Limited has emerged the lowest bidder.