Afcom Holdings IPO

Afcom Holdings Ltd

₹1,22,400 /1200 sharesMinimum Investment

Afcom Holdings IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
2 Aug ‘24 - 6 Aug ‘24₹1,22,4001,200₹102 - ₹108
Issue SizeIPO Doc
73.83Cr
RHP PDF

Subscription rate

As of 06 Aug'24, 03:00 PM
Qualified Institutional Buyers47.97x
Non-Institutional Investor191.07x
Retail Individual Investor142.56x
Total129.97x

About Afcom Holdings

Afcom Holdings operates cargo flights primarily to ASEAN countries, including Singapore, Indonesia, and Brunei, with a significant focus on Singapore. The company is involved in the transport of cargo on an airport-to-airport basis. The company has also established a network of General Sales and Service Agents (GSSAs) across various markets, including India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan. These GSSAs represent Afcom Holdings, marketing its cargo space to various freight forwarders. They function as a channel partner and act as the airline's extended arm in coordinating bookings from freight forwarders. They also liaise with customs clearing agents to ensure that the customs are cleared and the cargo is smoothly handed over to the airline, complete with all necessary shipping documents.;
Founded in
2013
Managing director
Capt. Deepak Parasuraman
Parent organisation
Afcom Holdings Ltd

Strengths & Financials of Afcom Holdings

Strengths
Risks
Afcom Holdings claims to be capable of managing hazardous cargo. This is a highly regulated field that necessitates approvals from the Directorate General of Civil Aviation (DGCA) and strict compliance with international safety standards.
The company offers supply chain solutions to a wide array of customers, including e-commerce marketplaces, direct-to-consumer e-tailers, and enterprises and SMEs across various sectors such as FMCG, consumer durables, consumer electronics, lifestyle, retail, automotive, and manufacturing.
On September 24, 2021, the company formed a partnership with the Air Logistics Group, part of the World Freight Company, which is a global leader in the cargo sales and service sector. This group acts as the company's GSSA in the Far Eastern countries. Additionally, on October 13, 2022, the company entered into an agreement with Taylor Logistics Private Limited, a member of the TTK Group, to serve as its GSSA in India.
Afcom Holdings has seen a consistent increase in its revenue from operations, rising from Rs 13.89 crore in FY21 to Rs 48.27 crore in FY22 and further to Rs 84.14 crore in FY23.
P Karthik Iyer Parasuraman, a member of Afcom Holdings' Promoter Group, is currently involved in legal proceedings with regulatory bodies including the Securities and Exchange Board of India (SEBI), the Stock Exchange, and the Central Bureau of Investigation (CBI).
There are outstanding legal proceedings against the company. Any adverse judgements in these cases could negatively affect the company’s business.
Afcom Holdings relies heavily on its top five customers for its revenue from operations. These customers accounted for 98.71%, 75.99%, 84.32%, and 100% of the company’s revenues for the periods ending February 29, 2024, and the fiscal years ending March 31, 2023, March 31, 2022, and March 31, 2021, respectively. Any loss or downturn in business from any of these key clients could impact the company's revenue streams and profitability.
Afcom Holdings is currently engaged in several legal proceedings. Any unfavourable outcome in any of these cases could have a negative impact on the company's business operations.
The company has total indebtedness of Rs 15.47 crore in debts as on February 29, 2024. Any inability to service or repay these debts could negatively impact the company’s business prospects.
The company has experienced negative cash flow in the past. Any repeat of that in the future could hurt the company’s business operations.

Afcom Holdings Financials

*All values are in Rs. Cr
No Graph Data To Display

Application Details of Afcom Holdings IPO

Apply asPrice bandApply upto
Regular102 - 108₹2 - 5 Lakh
High Networth Individual102 - 108₹2 - 5 Lakh
For Afcom Holdings IPO, eligible investors can apply as Regular.