Afcons Infrastructure IPO fully booked: Check latest subscription, GMP

Afcons Infrastructure's IPO consists of a fresh issue of 2.7 crore shares, totalling Rs 1,250.00 crore, and an offer for sale of 9.03 crore shares, amounting to Rs 4,180.00 crore.

In Short

• Afcons IPO fully subscribed, opened on October 25, 2024
• Analysts recommend 'Subscribe' for long-term investment
• Expected listing for the shares of Afcons is November 4, 2024

Afcons Infrastructure’s initial public offering (IPO) has been fully booked after seeing a slow start initially. The IPO opened for bidding on October 25, 2024, with a goal to raise Rs 5,430 crore from investors. The IPO remains open for bidding until Tuesday, October 29, 2024.

Afcons Infrastructure IPO has seen a subscription of 1.44 times. As of October 29, 2024, at 1:27 PM, the public offering was subscribed 0.58 times in the retail segment. In the Qualified Institutional Buyer (QIB) category, the subscription stood at 1.81 times, while the Non-Institutional Investor (NII) really drove the bidding numbers, with a subscription rate of 2.95 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 has been 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.

SHOULD YOU SUBSCRIBE?

"Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, we assign a “Subscribe” rating for medium- to long-term investment," said an IPO report from Geojit Financial Services Limited.

"Given the company’s advanced equipment base and proven execution capabilities and strategic market position make them a key player in infrastructure sectors. Hence, by looking at all attributes we recommend investors to “SUBSCRIBE” the Afcons Infrastructure Ltd for long term perspective only," said Rajan Shinde, Research Analyst, Mehta Equities Ltd.

The Grey Market Premium (GMP) for Afcons Infrastructure IPO is Rs 23 as of 1:30 PM on October 29, 2024. With a price band of Rs 463, the expected listing price is Rs 486 (cap price plus today's GMP), indicating a potential gain of 4.97% 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.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)