Afcons Infrastructure IPO Subscribed 2.63 Times On Day 3, GMP Nosedives To Rs 2
The IPO was led by non-institutional investors with a subscription of 5.05 times.
The initial public offering of Afcons Infrastructure Ltd. was subscribed 2.63 times on the third and final day on Tuesday. The issue was subscribed 36% on its second day and 10% on day one. The grey market premium of Afcons was Rs 2 as of 6:59 p.m., according to Chittorgarh's unit InvestorGain.
The infrastructure company has set a price band of Rs 440 to Rs 463 per share for its three-day IPO, which is a mix of both fresh issue and an offer for sale, totalling Rs 1,250 crore and Rs 4,180 crore respectively, at a face value of Rs 10 each.
The Shapoorji Pallonji Group's company raised Rs 1,621.5 crore from anchor investors on Thursday ahead of its IPO. The company allotted 3.5 crore shares at Rs 463 apiece to 80 anchor investors.
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.
Afcons Infrastructure IPO Issue Details
Issue opens: Oct. 25.
Issue closes: Oct. 29.
Issue price: Rs 440–463 per share.
Fresh issue: Rs 1,250 crore.
Offer for sale: Rs 4,180 crore.
Total issue size: Rs 5,430 crore.
Use Of Proceeds
Capital expenditure towards the purchase of construction equipment.
Funding long-term working capital requirements.
Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances by the company.
General corporate purposes.
Business Overview
Incorporated originally in 1959, Afcons is the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate, and has a legacy of over six decades.
During the period comprising the last 11 financial years and the three-month period ended June 30, 2024, the company has successfully completed 79 projects across 17 countries, with a total historic executed contract value of Rs 56,305 crore. As of June 30, 2024, they have 65 active projects (that is, ongoing projects) across 12 countries, aggregating to an order book of Rs 31,747 crore.
The company designs and executes projects across five major infrastructure business verticals:
Marine and industrial.
Surface transport.
Urban infrastructure.
Hydro and underground.
Oil and gas.
Over the years, the company has expanded its presence globally, in particular, across Asia, Africa, and the Middle East.
Afcons Infrastructure IPO Subscription Status: Day 3
The Afcons Infrastructure has been subscribed 2.63 times on Tuesday.
Qualified institutional buyers: 3.79 times.
Non-institutional investors: 5.05 times.
Retail investors: 0.94 times or 94%.
Employee Reserved: 1.67 times.
Afcons Infrastructure IPO GMP Today
The grey market premium of Afcons was Rs 2 as of 6:59 p.m. on Oct. 29, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 465 per share, which is a premium of 0.43%.
GMP is not an official price quote for the stock and is based on speculation.
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
