Active Infrastructures, the flagship player in civil construction and infrastructure space, is going to be listed on 28 March 2025. As the Indian government is pushing big infrastructure projects under National Infrastructure Pipeline and Gati Shakti, Active Infrastructures is well placed. Here’s a detailed investor focused Active Infrastructures IPO Review of the upcoming IPO with 10 key points supported by data and analysis.
Table of Contents
#1 Active Infrastructures IPO Review: Company Overview
Active Infrastructures was incorporated in September 2007. The company operates in two segments (1) execution of large civil construction projects including highways, urban development, water supply systems, and bridges and (2) providing engineering and design services for infrastructure projects which differentiates it from many its peers.
Headquartered in Nagpur, Maharashtra the company operates pan-India and has got excellent client feedback. The company’s commitment to quality and ability to manage multiple complex projects makes it stand out in a crowded construction space.
Promoters: Mr. Sunil Gyanchand Raisoni and Mr. Shreyas Sunil Raisoni are the individual promoters, while Shradha Infraprojects Limited and Riaan Diagnostic Private Limited are corporate promoters.
#2 Active Infrastructures IPO Analysis: Strong Order Book
The company has a strong and diversified order book across highways, water infrastructure and urban projects ensuring long term visibility. All the projects (completed, ongoing, or upcoming) are spread across Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura. This reflects its wide geographical presence and strong future pipeline.
#3 Active Infrastructures IPO Review: IPO Details
IPO Price: INR 178 – 181 per share IPO Opening Date: 21 March 2025 IPO Closing Date: 25 March 2025 Issue Size: INR 76.54 – 77.83 crore Total Shares Offered: 43,00,200 equity shares Market Maker Reservation: 2,16,000 shares Anchor Investor Reservation: 2,44,800 shares Listing Exchange: NSE EMERGE Listing Date: 28 March 2025
#4 Active Infrastructures IPO Analysis: Financial Performance
The financials reflect consistent growth and prudent management:
- Revenue from operations grew from INR 1.10 crore in FY22 to INR 97.18 crore in FY24, a significant scaling.
- EBITDA increased from INR 0.11 crore in FY22 to INR 17.33 crore in FY24.
- PAT (Profit After Tax) improved from INR 0.09 crore in FY22 to INR 10.45 crore in FY24, better cost efficiency and project management.
- Debt to equity is 2.25 as of March 2024, investors should watch this.
- Cash from operations turned positive in FY23 and FY24, INR 31.88 crore in FY24, improving financials.
#5 Active Infrastructures IPO Review: Objects of the Issue
The IPO proceeds will be utilized as follows:
- Funding Working Capital Requirements of the company – INR 38.98 crore
- Repayment/ Prepayment of Certain Borrowings availed by the company and Margin Money for obtaining Bank Guarantee – INR 16.72 crore
- Capital expenditure towards the purchase of construction types of equipment – INR 7.05 crore
- General Corporate Purpose
#6 Active Infrastructures IPO Analysis: Industry Outlook
As per RHP, the Indian infrastructure sector continues to benefit from government focus and allocations. The construction sector contributed 9% to India’s GDP in FY23. Initiatives like Smart Cities Mission, Bharatmala, and PM Gati Shakti Master Plan are creating large project pipelines. These programs aim to improve transport connectivity, urban infrastructure, and water systems INR 10 lakh crore allocated in Union Budget 2024-25.
#7 Active Infrastructures IPO Review: Unique Strengths
Exclusive Pre-Qualification in Key Government Projects: Active Infrastructures is one of the few mid-sized companies pre-qualified for large-scale highway and urban development contracts under the Ministry of Road Transport and Highways, enabling them to bid for projects above INR 200 crore — a rare feature for SMEs. High Repeat Business Ratio: Over 62% of their orders come from repeat clients (as per RHP), reflecting strong trust and reliability. Early Completion Incentive Revenue: In FY24, the company reported INR 4.2 crore earned from early completion incentives — highlighting their efficient execution capabilities. Strong Presence in Maharashtra and Madhya Pradesh: Unlike many peers, Active Infrastructures dominates these regions with large urban infra projects, which are less competitive and more profitable. Integrated In-House Design and Engineering Team: This reduces dependency on third-party consultants and speeds up project execution, a strength not common among smaller infrastructure companies.
#8 Active Infrastructures IPO Analysis: Risks to Consider
- Execution Delays: Any unforeseen delay in project delivery due to factors like weather, labor issues, or policy changes can impact financials. For example, the company disclosed that one major project in Madhya Pradesh saw a 45-day delay due to monsoon disruptions.
- Dependency on Government Contracts: While government contracts are considered safe, they are also subject to changes in political priorities and budget allocations. As an example, in FY23, two tenders worth INR 72 crore were deferred due to changes in state government priorities.
- Rising Raw Material Costs: Cement, steel, and fuel price fluctuations can reduce profitability, especially in fixed-price contracts. The company noted a 4.8% rise in procurement costs in FY24 that impacted short-term margins.
- Working Capital Cycles: High receivables from government agencies could strain liquidity, though the company has taken measures to improve collection timelines. The RHP mentions that INR 38 crore in receivables were outstanding beyond 120 days as of September 2024, indicating the challenge of long payment cycles.
#9 Active Infrastructures IPO Review: Valuation and Peer Comparison
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Active Infrastructures | 21.34 | 8.48 | 36.22 | 26.91 | 97.18 |
| AVP Infracon | 25.70 | 7.32 | 19.65 | 37.26 | 151.00 |
| V.L. Infraprojects | 6.95 | 6.63 | 37.31 | 144.82 | 113.93 |
Active Infrastructures is strong compared to other companies based on its EPS, RONW, and balanced valuation. The company is generating good profits even with lower revenue, which reflects strong management efficiency. The market is also valuing it at a balanced level (neither overvalued nor undervalued), making it a safer bet for investors. Investors should also note that SME IPOs carry liquidity risks.
#10 Conclusion: Should You Subscribe?
After carefully considering the positives and risks, investors should understand that Active Infrastructures offers a balanced opportunity. The company’s strong order book and consistent financial growth are complemented by its unique strengths like pre-qualification for large projects and earning incentives for early completion.
However, risks such as project execution delays and dependency on government contracts cannot be overlooked. For investors with a medium-to-long-term horizon seeking exposure to the booming infrastructure space, subscribing to Active Infrastructures IPO could be a prudent decision. In short, yes, it is worth investing if you believe in the infrastructure growth story and can tolerate moderate risk. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.