Afcons Infrastructure Day 3: Check latest subscription, GMP sees dip

The Afcons Infrastructure IPO comprises a fresh issue of 2.7 crore shares valued at Rs 1,250 crore and an offer for sale (OFS) of 9.03 crore shares worth Rs 4,180 crore.

In Short

• Afcons IPO sees 2.77x subscription on final day
• NII category saw most subscription for Afcons IPO
• Allotment of shares to be completed on October 30

The initial public offering (IPO) of Afcons Infrastructure picked up pace on its final day of bidding, led by Non-Institutional Investors (NII) to register over 2x subscription on Tuesday.

After having seen a muted response from investors, Afcons Infrastructure IPO saw an overall bid of 2.77 times before closing for bidding.

The public issue saw a subscription of 0.99 times in the retail category. In the Qualified Institutional Buyers (QIB) segment, demand was higher, with subscriptions reaching 3.99 times. Meanwhile, the Non-Institutional Investors (NII) category recorded the strongest interest, with subscriptions at 5.31 times.

The Afcons Infrastructure IPO comprises a fresh issue of 2.7 crore shares valued at Rs 1,250 crore and an offer for sale (OFS) of 9.03 crore shares worth Rs 4,180 crore. This means that the majority of the IPO’s proceeds are intended for existing shareholders, with the OFS providing them an exit route, while the fresh issue will go toward the company’s capital needs.

The IPO’s price band was set between Rs 440 and Rs 463 per share, and it requires a minimum bid of 32 shares. At the upper price band of Rs 463, retail investors need to invest a minimum of Rs 14,816. For small non-institutional investors (sNII), the minimum requirement is 14 lots, or 448 shares, totalling Rs 207,424. Large non-institutional investors (bNII) need to subscribe to at least 68 lots, which equals 2,176 shares and costs Rs 1,007,488.

The Grey Market Premium (GMP) for Afcons Infrastructure IPO is Rs 2 as of 6:59 PM on October 29, 2024. With a price band of Rs 463, the expected listing price is Rs 465 (cap price plus today's GMP), indicating a potential gain of 0.43% per share.

ICICI Securities Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO. Link Intime India Private Ltd is serving as the registrar for the issue.

The allotment for the IPO is anticipated to be finalised on Wednesday, October 30, 2024. The listing is set to take place on the BSE and NSE, with a tentative date of Monday, November 4, 2024.