AVP Infracon Ltd IPO

AVP Infracon Limited was incorporated as AVP Constructions Private Limited under the provisions of the Companies Act, 1956 vide certificate of incorporation dated September 09, 2009, issued by Registrar of Companies, Chennai. Subsequently, the name of the Company was changed to `AVP Infracon Private Limited' and a fresh certificate of incorporation consequent upon change of the name was issued by the Registrar of Companies, Chennai dated October 06, 2023. Further, the Company was converted into a Public Limited Company pursuant to shareholders resolution passed at the Extra Ordinary General Meeting of the Company held on October 20, 2023 and the name of the Company was changed from AVP Infracon Private Limited to AVP Infracon Limited vide a fresh Certificate of Incorporation dated November 17, 2023 having CIN U45400TN2009PLC072861 issued by the Registrar of Companies, Chennai.

Global Economic Overview: Global growth is forecast to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024. For advanced economies, the expected slowdown is from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024, amid stronger-than-expected US momentum but weaker-than-expected growth in the euro area. Emerging market and developing economies are projected to have growth modestly decline, from 4.1 percent in 2022 to 4.0 percent in both 2023 and 2024, with a downward revision of 0.1 percentage point in 2024, reflecting the property sector crisis in China. Forecasts for global growth over the medium term, at 3.1 percent, are at their lowest in decades, and prospects for countries to catch up to higher living standards are weak. Global inflation is forecast to decline steadily, from 8.7 percent in 2022 to 6.9 percent in 2023 and 5.8 percent in 2024. But the forecasts for 2023 and 2024 are revised up by 0.1 percentage point and 0.6 percentage point, respectively, and inflation is not expected to return to target until 2025 in most cases. Despite signs of economic resilience earlier this year and progress in reducing headline inflation, economic activity is still generally falling short of prepandemic projections, especially in emerging markets and developing economies. The strongest recovery among major economies has been in the United States, where GDP in 2023 is estimated to exceed its prepandemic path. In China, the pandemic-related slowdown in 2022 and the property sector crisis contribute to the larger output losses of about 4.2 percent, compared with prepandemic predictions. Other emerging markets and developing economies have seen even weaker recoveries, especially low-income countries, where output losses average more than 6.5 percent. INDIAN ECONOMY OVERVIEW According to the report by the World Bank, India was one of the fastest growing major economies in FY 2022-23 at 7.2%. India's growth rate was the second highest among G20 countries and almost twice the average for emerging market economies. This resilience was underpinned by robust domestic demand, strong public infrastructure investment and a strengthening financial sector. Robust economic expansion during the initial quarter of the fiscal year 2023 enabled India to surpass the United Kingdom, securing its position as the fifth-largest global economy, having successfully rebounded from the adverse effects of the COVID-19 pandemic. According to the World Bank's Industrial Development Update, it is expected that the global headwinds will continue to persist and intensify due to high global interest rates, geopolitical tensions, and sluggish global demand. In this context, the World Bank forecasts India's GDP growth for FY 2023-24 to be 6.3%. INDIA INFRASTRUCTURE SECTOR India's trajectory towards robust growth in 2023 and beyond hinges significantly on substantial advancements in crucial sectors, with a pivotal role played by the development of infrastructure. Infrastructure serves as a key facilitator in propelling India toward achieving a formidable US $26 trillion economy. The Indian economy's main growth engine is the infrastructure sector. The Government of India (GoI) gives highest priority on its development to guarantee the country's overall development. Investments directed towards constructing and enhancing physical infrastructure, particularly in harmony with initiatives promoting the ease of conducting business, stand as a critical factor for boosting efficiency and cost-effectiveness. Prime Minister Narendra Modi has recently underscored the indispensable nature of infrastructure as a pillar for ensuring effective governance across sectors. The government's unwavering commitment to shaping the future of infrastructure is evidenced by a series of recent initiatives. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, is at the forefront of ushering in systematic and effective reforms in the sector, having already made significant strides. Initiatives like the Smart Cities Mission and Housing for All have been beneficiaries of these infrastructure-focused endeavors. Saudi Arabia, in turn, aims to allocate substantial investments of up to US$ 100 billion in India across sectors such as energy, petrochemicals, refinery, infrastructure, agriculture, minerals, and mining. ROAD AND HIGHWAYS INFRASTRUCTURE The forecast for the roads and highways market in India indicates a remarkable Compound Annual Growth Rate (CAGR) of 36.16% from 2016 to 2025. This projection is attributed to the government's increasing initiatives to enhance the transportation infrastructure across the country. Innovations and exceptional performance characterize India's highways sector. The government has successfully introduced over 60 road projects, surpassing a value of $10 billion, employing the Hybrid Annuity Model (HAM). The HAM approach has effectively balanced risk distribution between private and public partners, fostering increased Public-Private Partnership (PPP) engagement in the sector. The National Highways Authority of India (NHAI) has adopted asset recycling through the toll-operate-transfer (ToT) model for 100 highways. Notably, the first two bundles, each comprising nine highways, were successfully monetized, attracting investments exceeding $2 billion. t

AVP Infracon Limited is a dynamic private sector firm involved in the construction of road projects based on Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) methods. The Company is engaged in the business of construction and transacts the business to construct, build, alter, acquire, convert, improve, design, erect, establish, equip, develop, dismantle, pull down, level, decorate, fabricate, reconstruct, renovate, remodel, rebuild all types of infrastructure developmental works, constructions works such as technically complex and high value projects like Express ways, National Highways, Flyovers, Bridges and Viaducts, Irrigation Projects, Urban Development - Civic amenities, Hospitals, warehouses, hotels and other Commercial and Residential Projects.