Afcons Infrastructure IPO Day 3: Subscription Reaches 2.61x as NII Interest Surges - Read Now

Afcons Infrastructure's initial public offering (IPO) is gaining momentum as it enters Day 3 of bidding. The IPO, which is part of the prominent Shapoorji Pallonji Group, is currently oversubscribed by 2.61 times, led primarily by non-institutional investors (NIIs). As of now, the retail portion has seen a subscription rate of 90%, indicating strong interest from individual investors.

Subscription Overview

The IPO initially struggled, with only 10% of shares booked on the first day. However, by Day 2, the overall subscription rose to 36%, with the NII segment achieving a 72% subscription. Retail individual investors (RIIs) accounted for a 36% subscription, while qualified institutional buyers (QIBs) stood at just 8%. The employee segment was a bright spot, oversubscribing by 1.01 times.

Key Details of the IPO

The total issue size is valued at ₹5,430 crore, with a fresh issuance of shares worth ₹1,250 crore and an offer for sale (OFS) of ₹4,180 crore from the promoter, Goswami Infratech Pvt Ltd. Currently, the promoter and associated entities hold a substantial 99% ownership stake in Afcons Infrastructure, headquartered in Maharashtra. The share price range is set between ₹440 and ₹463.

Brokerage Insights and Recommendations

Mehta Equities has weighed in on the IPO, highlighting concerns over the 77% OFS. Despite this, the firm praises Afcons Infrastructure’s advanced equipment base and proven execution capabilities, recommending that investors consider subscribing to the IPO for long-term gains.

The IPO remains open for subscription until today, October 29. Investors are encouraged to monitor developments closely as the final subscription figures come in.

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