Afcons Infrastructure Limited’s IPO, closing on October 29, 2024, has seen a modest response, with the overall subscription rate at just 23% as of October 28. By category, retail investors have subscribed at 0.30 times, non-institutional investors (NIIs) at 0.33 times, and qualified institutional buyers (QIBs) at a low 0.01 times. This restrained interest reflects the broader market’s cautious sentiment, as recent declines in key indices like the Nifty 50 have weighed on IPO activity.
Afcons has priced its IPO within a range of ₹440 to ₹463 per share, with a total issue size including a fresh issuance worth ₹1,250 crore and an offer for sale (OFS) of ₹4,180 crore by its promoter, Goswami Infratech. The funds raised will be directed towards funding new and ongoing projects, reducing debt, and enhancing Afcons’ market position. Notably, Afcons holds an impressive portfolio of over 65 active projects across 12 countries and has a strong order book valued at ₹31,747 crore as of June 30, 2024, making it a significant player in sectors such as marine, tunneling, and industrial infrastructure.
Despite subdued market sentiment, major brokerages like Anand Rathi, Canara Bank Securities, and KR Choksey Securities are optimistic about Afcons’ prospects and recommend subscribing, citing the company’s diverse project expertise, solid international presence, and growth potential in emerging markets.
The IPO’s grey market premium (GMP) has been volatile, with recent levels around ₹18, suggesting an estimated listing price of ₹483, or about a 4.32% premium over the upper price band. While the GMP previously reached as high as ₹225, fluctuating market conditions have influenced investor sentiment.
Key dates for prospective investors include October 30, 2024, for the allotment announcement, with the listing expected on November 4. A potential surge in subscriptions in the final days could improve Afcons’ listing performance and support stronger market entry.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a financial advisor before making any investment decisions. Investing in IPOs involves risks, and past performance is not indicative of future results.
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