Afcons Infrastructure IPO Sees Strong Market Backing: GMP Rises After First Day Bidding - Read Now 

Afcons Infrastructure IPO opened for bidding on October 25, 2024, and has received market interest within its first day. The Afcons IPO subscription status reveals that the issue has seen a 10% subscription in the first day. Even though the secondary market is being cautious, the GMP of Afcons Infrastructure went up, indicating the optimism of investors. The GMP of the IPO is now at ₹59.

Afcons Infrastructure IPO Subscription Status

Till the second day of opening, this IPO has seen 0.10 times subscription while the retail portion of the same has been subscribed 0.14 times and that of the Non-Institutional Investor has been at 0.11 times. Afcons Infrastructure IPO allotment date is going to be on October 30, 2024, while listing date expected on November 4, 2024.

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Brokerage Recommendations: "Subscribe" for Long-Term Gains

Top brokerages including Anand Rathi, BP Equities, and Geojit Securities recommended "subscribe" especially from a medium- to long-term view given the growth potential of Afcons Infrastructure with the strong market presence of the company.

Anand Rathi had maintained a "Subscribe – Long Term" call for this as it presents attractive valuations-37.9 times of earnings for FY24, annualized FY25, to the tune of 46.3 times of same does not justify the issue of ₹1,70,261.8 mn as not entirely priced and is fully capitalized with respect to the market cap - sales ratio that is in order at 1.34.

BP Equities has reiterated the same, saying Afcons Infrastructure trades at a P/E ratio of 35.1x on the higher price band for FY24 earnings, below its industry average. This, combined with its order book and diversified revenue streams, makes it even more attractive for growth.

Geojit Securities pointed out the benefits of Afcons' positioning in a government-sponsored infrastructure market. With demand triggered by urbanization and development programs, Afcons will enjoy an upper hand in this sector. Afcons P/E stands at 38x, as compared to industry standards at ₹463 on the upper band.

Grey Market Premium is positive.

A grey market premium of Rs 43 for Afcons, much ahead of its official listing, may help attract investors. Even if weak trends are observed in the secondary market, huge demand for Afcons shares in the grey market indicates optimistic trends.