Afcons Infrastructure IPO Day 2: Subscribed 36%, GMP Nearly Doubles

Afcons Infrastructure Ltd. opened for day two of its initial public offering on Monday. The issue was subscribed 0.36 times or 36% on its second day. The IPO was subscribed 10% on day one. It plans to raise up to Rs 5,430 crore. The grey market premium of Afcons Infrastructure was Rs 46 as of 09:29 p.m. on Oct. 28, 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 offer concludes on Tuesday, and the stock is set to list on the BSE and the National Stock Exchange.

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.

• 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.

• 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.

Incorporated originally in 1959, Afcons Infrastructure Ltd. is the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group (that is, the group’s leading engineering and construction company), 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.

The Afcons Infrastructure has been subscribed 0.36 times, or 36%, on Monday.

• Qualified institutional buyers: 0.08 times or 8%.

• Non-institutional investors: 0.72 times or 72%.

• Retail investors: 0.36 times or 36%.

• Employee Reserve: 1.01 times.

The grey market premium of Afcons Infrastructure was Rs 46 as of 09:29 p.m. on Oct. 28, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 509 per share which is a premium of 9.94%.

GMP is not an official price quote for the stock and is based on speculation. 

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.