Schedule of Afcom Holdings
| Issue open date | 02 Aug 2024 |
| Issue close date | 06 Aug 2024 |
| UPI mandate deadline | 06 Aug 2024 (5 PM) |
| Allotment finalization | 07 Aug 2024 |
| Refund initiation | 08 Aug 2024 |
| Share credit | 08 Aug 2024 |
| Listing date | 09 Aug 2024 |
| Mandate end date | 21 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 06 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 06 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Afcom Holdings
Incorporated in 2013, Afcom Holdings specializes in cargo carriage on an airport-to-airport basis. The company provides supply chain solutions to customers like e-commerce marketplaces, e-tailers, and enterprises across sectors such as FMCG, consumer electronics, lifestyle, automotive, and manufacturing through various Freight Forwarders. Afcom operates cargo flights to ASEAN countries, primarily Singapore.
General Sales & Service Agents (GSSAs) function as extended arms of airlines, handling cargo bookings, and customs clearances, and ensuring the smooth handover of goods. Afcom also collaborates with freight forwarders and cargo sales agents (CSA) who block space on aircraft and manage cargo transfers. It has strategic agreements with Air Logistics Group, a global leader in cargo sales and services, representing Afcom in far-eastern countries, and Taylor Logistics Private Limited of the TTK Group as its GSSA in India. Afcom has appointed GSSAs in India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan, ensuring extensive coverage and efficient cargo operations.
Financials of Afcom Holdings
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹73.83 crores |
| Fresh Issue | ₹73.83 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 42.8 (58%) |
| Debt reduction | 10 (13.5%) |
| Working capital requirements | 8 (10.8%) |
| General corporate purposes | 13.03 (17.7%) |
*All figures except EPS are in ₹ Crores
Strengths
- Well-equipped to handle hazardous cargo: The company has specially trained supervisory and monitoring staff and well-laid-out procedures that ensure the successful handling of hazardous cargo which is highly specialized and regulated and requires approvals from the Directorate General of Civil Aviation (DGCA) and requires strict adherence to international safety standards.
- Large entry barriers into the industry: The company operates in a highly regulated industry that requires considerable expertise and experience to qualify to carry out business. Having achieved an early-mover advantage, The company has all the necessary clearances, infrastructure, and operational background. All these factors act as natural barriers to any potential competition.
Risks
- Reliance on top clients: The company derives nearly 98.7% of its revenue from its top five customers. Any reduction in business from these top five customers or any other major clients could have negative implications for both revenue and profitability.
- Delay in delivering the goods: Operating in the Air cargo industry, Various factors, such as adverse weather conditions (like storms and heavy fog) and unforeseen operational disruptions (including strikes, technical issues, and compliance matters) could potentially harm the business by eroding customer trust.
- Negative cash flows from operating activities: The company has had negative cash flows from its operating activities in the last 3 years. Negative cash flows over extended periods could affect the company’s ability to implement its growth plans.