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Afcons Infrastructure IPO Listing: Investors with a long-term outlook may consider holding onto their shares, as the company’s fundamentals could drive gradual value appreciation once market conditions stabilise, says Shivani Nyati.
Afcons Infrastructure IPO Listing Today.
Afcons Infrastructure IPO Listing Today: The shares of Afcons Infrastructure, a Shapoorji Pallonji Group’s flagship infrastructure engineering and construction firm, on Monday listed on stock exchanges at a discount of 8 per cent at Rs 426 apiece on the NSE, against the IPO issue price of Rs 463. The grey market activity was also signalling a muted listing. On the BSE, the shares of Afcons opened lower by 7.67 per cent at Rs 430 apiece but later recovered to Rs 461.65. However, at 11:24 am, the shares were trading at Rs 459.8 on the BSE.
The company’s market valuation stood at Rs 16,680.87 crore.
Afcons Infrastructure IPO: Should Investors Hold, Sell or Buy?
“Afcons Infrastructure Limited’s IPO was listed at ₹426, marking around an 8% loss from its issue price of ₹463, which aligned with expectations given the current market sentiment. The IPO received a moderate subscription of 2.7 times, primarily driven by interest from institutional and retail investors. The listing performance reflects the cautious market outlook, despite the company’s strong credentials as part of the Shapoorji Pallonji Group and a solid order book supporting future growth,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
While the discounted listing may disappoint short-term investors, the IPO’s reasonable pricing, along with Afcons’ stable financial performance and project pipeline, offer potential long-term value, she added.
“Investors with a long-term outlook may consider holding onto their shares, as the company’s fundamentals could drive gradual value appreciation once market conditions stabilise,” Nyati said.
Afcons Infrastructure IPO: More Details
The initial public offer of Afcons Infrastructure, which was opened between October 25 and October 29, got fully subscribed on the last day of share sale and ended with 2.63 times subscription. The Rs 5,430-crore initial share sale received bids for 22,78,13,728 shares against 8,66,19,950 shares on offer, as per NSE data.
During the subscription period, the IPO category for non-institutional investors received 5.05 times subscription while the quota for Qualified Institutional Buyers (QIBs) got subscribed 3.79 times. The portion meant for Retail Individual Investors (RIIs) got 94 per cent subscription.
Afcons Infrastructure Ltd (AIL) on Thursday said it has mopped up Rs 1,621 crore from anchor investors.
The price band was fixed at Rs 440-463 per share.
The IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Pvt Ltd.
The Maharashtra-based company will utilise Rs 80 crore from the fresh issue proceeds to buy construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, and the rest for general corporate purposes.
Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution and has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe.
ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd were the book-running lead managers to the issue.
