Tuesday, November 5, 2024

Afcons Infrastructure IPO To List Tomorrow; Here’s What GMP Signals

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Afcons Infrastructure IPO (Image Source: iStockphoto)

Afcons Infrastructure, an engineering and construction company owned by the Shapoorji Pallonji Group, will be listed on the NSE and BSE on November 4, 2024. The IPO raised Rs 5,430 crore, comprising a fresh issue of 2.7 crore shares totaling Rs 1,250 crore and an offer for sale of 9.03 crore shares worth Rs 4,180 crore.

The bidding phase started from October 25 to October 29, 2024, and provided shares priced between Rs 440 and Rs 463. Retail investors needed to invest Rs 14,816 for 32 shares, while small non-institutional investors (sNII) needed 14 lots (448 shares) at Rs 207,424, and large non-institutional investors (bNII) needed 68 lots (2,176 shares) at Rs 1,007,488. Additionally, 596,659 shares were allocated for staff at a discount of Rs 44 per share.

As per multiple websites that track the grey market premium activities, the shares of Afcons Infrastructure IPO are commanding a GMP in the price range of Rs 5 – Rs 10 in the unlisted market.

Afcons Infrastructure has almost six decades of experience in infrastructure development, with a global reach spanning Asia, Africa, and the Middle East. By September 30, 2023, Afcons had completed 76 projects in 15 countries, with a record contract value of Rs 522.20 billion. The company presently manages 67 active projects in 13 countries, with an order book worth Rs 348.88 billion.

Afcons Infrastructure IPO Review

According to the Anand Rathi research report, “The company’s market capitalisation stands at ₹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.)

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