Afcons Infrastructure IPO issue subscribed 10% on Day 1
Mumbai: Afcons Infrastructure Ltd, the flagship engineering and construction firm of Shapoorji Pallonji Group, made its stock market debut today.
Despite its impressive track record in complex engineering, the IPO's first day on D-Street showed modest interest, with a 10% subscription rate, according to BSE data.
The company’s IPO attracted bids for 8,606,560 shares against the total 86,619,950 shares on offer.
Retail investors showed 14% interest, while non-institutional investors subscribed to 11% of their allocated shares. Institutional buyers, however, barely participated, with only a 1% subscription.
Meanwhile, employees displayed stronger support with a 39% subscription to their designated portion.
Known for delivering challenging infrastructure projects both in India and abroad, Afcons set its IPO price between Rs 440 and Rs 463 per share, offering a fresh issuance of Rs 1,250 crore in shares, alongside an offer-for-sale worth Rs 4,180 crore by promoter Goswami Infratech.
The subscription period is open until October 29, giving investors a few more days to participate.
As of June 30, 2024, Afcons is managing 65 projects across 12 countries, with an order book valued at Rs 31,747 crore. The company has a strong foothold in Asia, Africa, and the Middle East, handling innovative projects that underscore its global growth.
Grey Market Premium (GMP)
Interest in Afcons’ IPO has translated to a healthy grey market premium, with its unlisted shares trading at a premium of Rs 60 as of October 25, reflecting a 13% gain over the IPO's upper price band of Rs 463. This premium suggests strong investor sentiment and expectations for gains once public trading begins.
Key IPO Details
Issue Period: October 25–October 29, 2024
Type: Book Built Issue
Price Band: Rs 440–Rs 463 per share
Face Value: Rs 10 per share
Lot Size: 32 shares
Minimum Investment: Rs 14,816 for retail investors
Expected Allotment Date: October 30, 2024
Listing Date: November 4, 2024
The IPO mix includes a fresh issue valued at Rs 1,250 crore and an offer-for-sale of Rs 4,180 crore. Proceeds from the fresh issuance are earmarked as follows:
- Rs 800 crore for acquiring new construction equipment
- Rs 3,200 crore for long-term working capital
- Rs 6,000 crore to repay existing debt
- Remaining funds for general corporate purposes
The anchor investor shares will be subject to a lock-in period: 50% of shares will be locked for 90 days, and the remaining 50% for 30 days from the allotment date, adding stability to the issue's early investors.
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