Afcon Infra IPO (Image Source: iStock)
New Delhi: Afcons Infrastructure set to make its debut on the stock market this Monday, November 4, after completing its IPO subscription process, which closed on October 29. The IPO allotment was finalized on October 31, and shares have already been credited to investors’ demat accounts, with refunds processed for those who didn’t receive shares.
Afcons Infrastructure IPO: Subscription Status
The IPO, which opened for subscription on October 25, attracted significant interest, ending with an overall subscription rate of 2.63 times. The retail segment saw a 94 per cent subscription, while non-institutional investors subscribed at 5.05 times, and qualified institutional buyers (QIBs) booked 3.79 times their allotted portion. The employee category also saw positive interest, with a 1.67 times subscription rate.
During the initial bidding days, the IPO faced a slow start, reaching only 36 per cent by the second day and 10 per cent on the first. However, demand increased, supported by a Rs 1,621 crore investment from anchor investors announced by Afcons on October 31.
Afcons Infrastructure IPO: Price Band
The IPO price band was set between Rs 440 and Rs 463 per share, with the lot size fixed at 32 shares. Employees were offered a Rs 44 discount per share. The grey market premium (GMP) for Afcons Infrastructure shares currently stands at Rs 1, a minor premium over the IPO price. Based on this, the estimated listing price is around Rs 464 per share, which indicates a slight 0.22 per cent increase over the upper end of the price band.
Fresh Issuance of Shares
The IPO includes a fresh issuance of shares valued at Rs 1,250 crore, along with a share offering worth Rs 4,180 crore by the promoter, Goswami Infratech. Major shareholders in Afcons Infrastructure include Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, who collectively hold 99 per cent of the shares.
Book-Running Lead Managers
Several well-known financial institutions served as book-running lead managers for the IPO, including ICICI Securities, SBI Capital Markets, and Jefferies India. Link Intime India Private Ltd handled the registrar responsibilities for the issue.
What Expert Have To Say?
Shivam Gupta from Anand Rathi said “At the upper band company is valuing at 37.9x its FY24 earnings along with being valued at 46.3x if we annualize FY25 earnings. Following the issuance of equity shares, the company’s market capitalization stands at Rs 1,70,261.8 million, with a market cap-to-sales ratio of 1.34 based on its FY24 earnings. We believe that the issue is fully priced and recommend “Subscribe –
Long Term” rating to the IPO.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)