Afcons Infrastructure IPO GMP Surges To Rs 75 Ahead Of Oct. 25 Launch, Check Key Details

The bidding window for the initial public offering (IPO) of Afcons Infrastructure Ltd. is set to open on October 25. The IPO has been garnering strong interest in the unlisted market even before subscriptions begin. The grey market premium (GMP) on Afcons Infrastructure IPO surged to Rs 75 at 11:24 am on October 24.

The GMP indicated that shares of Afcons Infrastructure Ltd. are likely to make their market debut at Rs 538, marking a premium of 16.20% over the upper price band of Rs 463.

Investors must note that the GMP of a stock is highly speculative and may not be a true indicator of how the stock may be listed on the exchanges.

The subscription window for Afcons Infrastructure IPO will be open between October 25-29. This will be followed by the finalisation of the share allotment on October 30.

Shares of Afcons Infrastructure IPO will list on the BSE and NSE, tentatively on November 4.

Afcons Infrastructure IPO price band has been fixed at Rs 440 to Rs 463 per share. Retail investors can place bids for a minimum lot size of 32 shares, totalling an investment of Rs 14,816. Afcons Infrastructure IPO is worth Rs 5,430 crore. The mainboard issue consists of a fresh issue of 2.7 crore shares amounting to Rs 1,250 crore along with an offer for sale (OFS) of 9.03 crore shares aggregating to Rs 4,180 crore.

The book-running lead managers for the construction company's public issue include ICICI Securities Ltd., Dam Capital Advisors Ltd. (formerly Idfc Securities Ltd), Jefferies India Private Ltd., Nomura Financial Advisory And Securities (India) Pvt., Nuvama Wealth Management Ltd. and SBI Capital Markets Ltd. LinkIntime India Pvt. is the registrar for the IPO.

The company plans to use the proceeds of the public issue to purchase construction equipment and to fund its long-term working capital needs. A portion of the proceeds will also be used for repayment of a portion of the company’s borrowings and acceptances. Funds raised via the public issue will also be used for general corporate purposes.

Incorporated in 1959, Afcons Infrastructure Ltd. operates as an infrastructure engineering and construction company. The company is a part of the Shapoorji Pallonji group. The company undertakes construction projects in Asia, Africa and the Middle East.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.